Human Resource Management Practices and their Impact on

Human Resource Management Practices and their Impact on

Organisational Citizenship Behaviour in the Public Sector

Universities of Pakistan

A thesis submitted in fulfilment of the requirement for the degree of Doctor of

Philosophy

By

Nusrat Khan Shahani

MBA

School of Management and Marketing

Charles Sturt University

Australia

March, 2015

i

In the name of Allah, Most Gracious, Most Merciful.

“By the time, verily man is in loss, except such as have faith, and do rightious deeds and

(join together) in the mutual enjoinig of truth, and of patience and constancy”.

(Holy Quran 103:1-3)

ii

Table of Contents

TABLE OF CONTENTS ii

DEDICATIONS xiii

DECALARATION xiv

LIST OF TABLES xv

LIST OF FIGURES xviii

ACKNOWLEDGMENTS xix

ETHICS APPROVAL xxi

LIST OF ABBREVIATIONS xxii

PUBLICATIONS EMERGED FROM THIS RESEARCH xxiv

ABSTRACT xxv

Chapter One: Introduction 1

1.1 Chapter Overview 1

1.2 Introduction 1

1.3 Background to the Research: The Islamic Republic of Pakistan 3

1.3.1 Economy 4

1.3.2 Education 5

1.3.3 Public Sector Universities in Pakistan 6

1.3.4 Human Resource Management Practices in Pakistan 7

1.3.5 The Context of the Study 8

1.4 Theoretical Background: Institutional Theory 9

1.4.1 Human Resource Management Practices 11

1.5 Constructs of the Study 13

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1.5.1 Reward Management System 13

1.5.2 Promotion Practices 14

1.5.3 Performance Appraisal System 16

1.5.4 National Culture 18

1.5.5 Organisational Culture 19

1.5.6 Organisational Citizenship Behaviour 21

1.6 The Theoretical Model 23

1.7 Research Problem 25

1.8 Research Objectives 26

1.9 Research Questions 26

1.10 Methodology 27

1.10.1 Research Paradigm and Method 27

1.10.2 Questionnaire 27

1.10.3 Interviews 28

1.10.4 Population 28

1.10.5 Sampling Design 29

1.10.6 Research Instrument and Measures 29

1.10.7 Analytical Strategies 30

1.10.8 Scope and Delimitations 31

1.11 Research Outcomes and Contributions of the Study 31

1.12 Organisation of Thesis 31

1.12.1 Chapter 1: Introduction 31

1.12.2 Chapter 2: Review of Literature 32

1.12.3 Chapter 3: Research Methodology and Design 32

1.12.4 Chapter 4: Quantitative Analysis, Results and Discussion 32

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1.12.5 Chapter 5: Qualitative Analysis, Results and Discussion 33

1.12.6 Chapter 6: Conclusion, Limitations and Future Directions 33

1.13 Conclusion 33

Chapter Two: Review of Literature 35


2.2 Theoretical Background 36

2.2.1 Institutional Theory 36

2.3 Human Resource Management Practices 38

2.3.1 Human Resource Management Practices and Cultural

Context 48

2.3.2 Transferability of Human Resource Management

Practices 51

2.4 Reward Management System 52

2.5 Promotion Practices 59

2.6 Performance Appraisal System 68

2.7 National Culture 76

2.8 Organisational Culture 86

2.9 Organisational Citizenship Behaviour 92

2.10 Relationships between the Constructs: Reward Management

System, Promotion Practices, Performance Appraisal System,

National Culture, Organisational Culture and

Organisational Citizenship Behaviour 100

2.10.1 Reward Management System and Promotion Practice 100

2.10.2 Promotion Practices and Performance Appraisal System 102

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2.10.3 Reward Management System and Performance Appraisal

System 103

2.10.4 Reward Management System and National Culture 105

2.10.5 Reward Management System and Organisational Culture 107

2.10.6 Promotion Practices, National Culture and Organisational

Culture 108

2.10.7 Performance Appraisal System and National Culture 110

2.10.8 Performance Appraisal System and Organisational Culture 112

2.10.9 National Culture and Organisational Culture 113

2.10.10 Organisational Citizenship Behaviour, Reward

Management System and Performance Appraisal System 115

2.10.11 Organisational Citizenship Behaviour And Promotion

Practices 117

2.10.12 Organisational Citizenship Behaviour, National

Culture and Organisational Culture 118

2. 11 Overall Theoretical Model 122

2.12 Conclusion 124

Chapter Three: Research Methodology and Design 125


3.2 Research Approach 125

3.2.1 Quantitative Approach 128

3.2.2 Qualitative Approach 128

3.3 Population of the Study 129

3.4 Data Collection Methods 130

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3.4.1 Quantitative: Data Collection 131

3.4.1.1 Unit of Analysis 131

3.4.1.2 Quantitative Method 132

3.4.1.3 Pilot Study 132

3.4.1.4 The Cover Letter 134

3.4.1.5 The Sampling Design 134

3.4.2 Qualitative: Data Collection 138

3.4.2.1 Unit of Analysis 138

3.4.2.2 Qualitative Method 138

3.4.2.3 Interview Guidelines 139

3.4.2.4 The Sampling Design 140

3.5. Research Instrument 141

3.5.1 Survey 142

3.5.2 Survey Language 143

3.5.3 Response Rate 144

3.5.4 Semi-Structured Interview 144

3.6 Analytical Procedure 146

3.6.1 Data Entry 146

3.6.2 Demographic Variables 146

3.6.3 Organisational Variables 147

3.6.4 Constructs of the Study 147

3.7 Measures 147

3.7.1 Reward Management System 147

3.7.2 Promotion Practices 148

3.7.3 Performance Appraisal System 148

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3.7.4 National Culture 149

3.7.5 Organisational Culture 149

3.7.6 Organisational Citizenship Behaviour 149

3.8 Data Analysis Plan 150

3.8.1 Data Analysis Plan: Quantitative 150

3.8.1.1 Data Coding and Editing 150

3.8.1.2 Data Validation 151

3.8.1.3 Factor Analyses 151

3.8.1.4 Structural Equation Modelling 152

3.8.1.5 Justification for Structural Equation Modelling Use 153

3. 8.2 Data Analysis Plan: Qualitative 154

3.8.2.1 Transcription 155

3.8.2.2 Coding 156

3.8.2.3 Themes 156

3.9 Triangulation 157

3.9.1 Justification for the Use of Triangulation 157

3.10 Ethical Considerations 159

3.11 Conclusion 160

Chapter Four: Quantitative Analysis, Results and Discussion 161


4.2 Demographic and Organisational Profile of the Respondents 161

4.3 Data Normality: Skewness and Kurtosis 164


4.4.1 Factor Analysis 166

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4.4.2 Definition of the Latent Factors 170

4.4.3 Correlation Analysis 172

4.4.4 Regression Analysis 174

4.4.5 Multivariate Analysis of Variance 177

4.4.6 Discussion on Reward Management System 182






4.5.5 Discussion on Promotion Practices 194






4.6.5 Discussion on Performance Appraisal System 210







4.7.6 Discussion on National Culture 230


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4.8.6 Discussion on Organisational Culture 250







4.9.6 Discussion on Organisational Citizenship Behaviour 270

4.10 The Final Model Showing Relationship Between The Four

Constructs: Human Resource Management Practices,

National Culture, Organisational Culture and Organisational

Citizenship Behaviour 276

4.11 Hierarchical Regression Analysis of Human Resource

Management Practices, National Culture, Organisational

Culture and Organisational Citizenship Behaviour 283

4.12 Discussion on Final Model of the Study 285

4.13 Conclusion 297

Chapter Five: Qualitative Analysis, Results and Discussion 300


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5.2 Nature of Qualitative Research 300

5.3 Interviews 302

5.4 Human Resource Management Practices 304

5.4.1 Role of Human Resource Management 304

5.4.2 Current Human Resource Management Usage 305

5.4.3 Understanding of Staff 308



5.6.1 Promotion Opportunities 316

5.6.2 Clarity of Requirements 317

5.6.3 Fairness of Promotion 318

5.6.4 Promotion as Reward 319


5.7.1 Purpose of Appraisal 321

5.7.2 Appraisals for Work-Related Goals 322

5.7.3 Appraisals Based Career Paths 323

5.7.4 Performance Aspects 325


5.8.1 Significant Historical Figures 327

5.8.2 Important Historical Events 328

5.8.3 Cultural Attributes 329


5.9.1 Organisation as a Special Place 331

5.9.2 Attributes of Organisational Leader 332

5.9.3 Management Style 333

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5.9.4 Organisational Spirit 334


5.10.1 Organisational Citizenship Behaviour within Organisation 336

5.10.2 Organisational Citizenship Behaviour Impact on

Performance 337

5.10.3 Relationships between Human Resource Management and

Organisational Citizenship Behaviour 338

5.11 Discussion 340

5.12 Triangulation Analysis 347

5.12.1 Quantitative Stage 347

5.12.2 Qualitative Stage 348

5.13 Conclusion 349

Chapter Six: Conclusion, Limitations and Future Directions 350


6.2 Contribution to Theory and Practice 350

6.2.1 Contributions for Human Resource Management Practices 351

6.2.1.1 Contributions to Theory: Human Resource

Management Practices 351

6.2.1.2 Contributions to Practice: Human Resource

Management Practices 354

6.2.2 Contribution for National Culture 356

6.2.2.1 Contributions to Theory: National Culture 356

6.2.2.2 Contributions to Practice: National Culture 357

6.2.3 Contribution for Organisational Culture 358

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6.2.3.1 Contributions to Theory: Organisational Culture 358

6.2.3.2 Contributions to Practice: Organisational Culture 359

6.2.4 Contribution for Organisational Citizenship Behaviour 360

6.2.4.1 Contribution to Theory: Organisational Citizenship

Behaviour 360

6.2.4.2 Contribution to Practice: Organisational Citizenship

Behaviour 362

6.3 Limitations of the Study 363

6.3.1 Common Method Bias 364

6.3.2 Population and Sample 364

6.3.3 Context Generalisation 364

6.3.4 Measures-Quantitative Survey and Semi-structured

Interviews 365

6.4 Delimitations of the Study 366

6.5 Directions for Future Research 367

6.6 Conclusions 369

REFERENCES 372

APPENDIX (A) 442

APPENDIX (B) 444

APPENDIX (C) 446

APPENDIX (D) 448

APPENDIX (E) 452

APPENDIX (F) 453

APPENDIX (G) 465

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DEDICATIONS

With all my love, I dedicate this research to the most precious people, without whom I

am unable to do anything:

My Loving Parents, My Brothers and My dearest Husband and to My dearly departed

Grandmother whom I sadly lost during my Ph.D. May Allah (Almighty) rest her soul in

heaven (Amin).

xiv

DECALARATION

I Nusrat Khan Shahani, hereby declare that the results, analysis, ideas, findings and

conclusions reported in this thesis are entirely my own efforts, except where otherwise

acknowledged. I also declare that this submission is my own work and that, to the best

of my knowledge and belief, it contains no material previously published or written for

any degree award.

……………………….. Date……………….

Nusrat Khan Shahani

xv

List of Tables

Table 1.1 Public Sector Spending on Education 5

Table 3.1 Interview Participants 141

Table 4.1 Demographic and Organisational Profile of the Respondents 163

Table 4.2 Skewness and Kurtosis Statistics 165

Table 4.3 Descriptive Statistics, Factor Loadings, and Reliability

of Reward System and Award Recognition 171

Table 4.4 Inter-correlations of Reward System and Award

Recognition 173

Table 4.5 Regression Analysis for Reward Management System 176

Table 4.6 MANOVA for Reward Management System 179

Table 4.7 ANOVA between Independent and Dependent

Variables 181

Table 4.8 Descriptive Statistics, Factor Loadings, and Reliability of

Fair Treatment in Promotion 189

Table 4.9 Inter-correlations of Fair Treatment in Promotion 191

Table 4.10 Regression Analysis for Promotion Practices 193


of Perceptions of Performance Appraisal, Training on Appraisal,

Ratings on Performance, Aspects of Appraisal, Record

of Performance, Procedure for Appraisal and

Information for Appraisal 202

Table 4.12 Inter-correlations of Perceptions of Performance Appraisal,

Training on Appraisal, Ratings on Performance, Aspects

of Appraisal, Record of Performance, Procedure for Appraisal

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and Information for Appraisal 207

Table 4.13 Regression Analysis for Performance Appraisal System 209

Table 4.14 Descriptive Statistics, Factor Loadings, and Reliability of

National/Cultural Heritage, Employee Ethnocentrism and Belief

System 219

Table 4.15 Inter-correlations of National/Cultural Heritage, Employee

Ethnocentrism and Belief System 222

Table 4.16 Regression Analysis for National Culture 224

Table 4.17 MANOVA for National Culture 227


Variables 229


of Strategic Emphasis, Organisational Leaders and

Dominant Characteristics 239

Table 4.20 Inter-correlations of Strategic Emphasis, Organisational

Leaders and Dominant Characteristics 242

Table 4.21 Regression Analysis for Organisational Culture 244

Table 4.22 MANOVA for Organisational Culture 247


Variables 249


of Conscientiousness, Civic Virtue, Altruism, Sportsmanship

and Courtesy 260

Table 4.25 Inter-correlations of Conscientiousness, Civic Virtue,

Altruism, Sportsmanship and Courtesy 263

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Table 4.26 Regression Analysis for Organisational Citizenship

Behaviour 265

Table 4.27 MANOVA for Organisational Citizenship

Behaviour 267


Variables 269

Table 4.29 Goodness-of-Fit Indices 278

Table 4.30 Structural Parameter Estimates 280

Table 4.31 Hierarchical Regression Analysis of Human

Resource Management Practices, National Culture,

Organisational Culture and Organisational Citizenship

Behaviour 284

Table 4.32 Summary of Results of the Hypotheses Tested 296

Table 5.1 Summary of Themes of the Qualitative Study 344

xviii

List of Figures

Figure 1.1 Map of Pakistan 3

Figure 1.2 Theoretical Model 24

Figure 2.1 Institutional Mechanisms and HRM 37

Figure 2.2 Overall Theoretical Model 123

Figure 3.1 Sampling Design: Quantitative 136

Figure 3.2 Triangulation 158

Figure 4.1 The Final Structural Model for the Four Constructs

(Human Resource Management Practices, National Culture,

Organisational Culture and Organisational Citizenship

Behaviour) 282

xix

Acknowledgements

Above all, I give thanks to Allah (Almighty) for giving me strength, guidance and help

to complete this research. I would like to acknowledge many for their support, care and

love.

First, my special thanks to my supervisor, Dr. Pamela Lockhart, without whose support

I would not have been able to accomplish this task. I feel fortunate and proud to be one

amongst her Ph.D students. I am greatly indebted for her valuable guidance, support and

motivation and for her perspective and encouragement throughout this research and

writing up of my thesis.

I would also like to thank my second supervisor Dr. Ramudu Bhanugopan, for

providing significant guidance, expertise and quality feedback for my thesis, and Dr.

Geoff Bamberry for his support in the early stages of my Ph.D.

I would like to express many thanks to Ada Muhammad Sharif Abbasi, for the constant

help, kindness and encouragement he provided throughout my research. I would like to

specially thank Dr. Waseem Afzal, Mr. Tony Bush, Dr. Emma Rush, Prof. Eddie

Oczkowski and Ada Syed Ghulam Sarwar Shah for their help and support and I would

also like to thank my colleagues and friends Joanna, Stacey, Laura, Allen, Dr. Yapa

Bandara, Dr. Sarath, Karen MacKney, Tehmina, Khadeja, Saira, Shumaila, Sonia,

Nazish, Uzma, Saba and all my friends at, Perth (WA), and my hometown in Pakistan

and the staff in School of Management and Marketing.

xx

I would like to thank my family for standing by me in thick and thin during my Ph.D.

When I felt down they encouraged and motivated me, when I felt lost they guided me,

when I missed them they made themselves available to me through sharing and

rejoicing in past memories and when I was happy they cherished my happiness.

Specially, I am extremely thankful to my father Mr. Muhammad Khan for his constant

motivation, unmatched love and confidence in me at each step of my life (Baba you are

the best father in the world). I am indebted to my lovely mother, Mrs. Aisha Shahani,

for her supreme love and prayers. I am deeply grateful and thankful to my brother

Muhammad Ibrahim for helping me through the data collection period. I am also

thankful to my brother Muhammad Aslam for extraordinary care. I would like to thank

my brothers Akram Khan, Azam Khan and Asif Khan for their continued best wishes. I

would also like to extend huge and warm thanks to my father in-law, my mother in-law,

brothers’ in-laws, and my sisters’ in-laws, for their love and tenderness, for the support they

offered, and for their understanding and encouragement when it was most required. Lastly,

but not least my very special thanks go to my loving husband Mr. Riaz Hussain for his

outstanding love, trust, endless patience and belief in my continued voyage. Thank you

all!

Finally, I would like to acknowledge my gratitude to The Mehran University of

Engineering and Technology, Jamshoro and Charles Sturt University for the

sponsorship and am thankful to those who participated in this research and helped me in

collecting the data and dedicated their time for the completion of this Ph.D.

xxi

xxii

List of Abbreviations

AGFI Adjusted Goodness-of-Fit Index

CA Correlation Analysis

CFI Comparative Fit Index

DF Degree of Freedom

ECVI Expected Cross-Validation Index

FA Factor Analysis

GFI Goodness-of-Fit Index

HR Human Resources

HRM Human Resource Management

HRMP Human Resource Management practices

IFI Incremental Fit Index

KMO Kaiser Meyer Olkin

MANOVA Multivariate Analysis

MLE Maximum Likelihood Estimate

MNCs Multinational Companies

NFI Normed Fit Index

NC National Culture

OB Organisational Behaviour

OC Organisational Culture

OCB Organizational Citizenship Behaviour

PAS Performance Appraisal System

PCA Principal Component Analysis

PP Promotion Practice

RA Regression Analysis

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RMS Reward Management System

RMR Root Mean-Square Residual

RMSEA Root Mean-Square Error of Approximation

SEM Structural Equation Modelling

UK United Kingdom

US United States

USA United States of America

χ2 Chi Square Value

xxiv

Publications Emerged From This Research

Peer Reviewed Conference Proceedings

Shahani, N., Lockhart, P., Bhanugopan, R. (2014). ‘Transferability of Human

Resource Management Practices (HRM) and the Effects of National and

Organisational Culture: Toward a Pragmatic Model’. The Australia and New

Zealand Academy of Management (ANZAM), 3-5 December 2014, UTS Business

School Sydney, Australia.

Shahani, N., Lockhart, P., Bhanugopan, R. (2014). ‘Exploring Employee Perceptions

on Reward Management in Public Sector Universities in Pakistan’. The Australia

and New Zealand International Business Academy (AIB-ANZ), Research Symposium

13-14 November 2014, Cliftons, Sydney, Australia.

xxv

Abstract

The importance of human resource management practices (HRMP) has gained

acceptance and wide recognition in a cross-cultural context. Several studies, examining

the procedures and practices of human resource management (HRM) and its

implementation aspects have emerged, and been applied in different contexts. However,

despite growing literature on HRMP, practicability and execution in different contexts,

very little published literature attempts to predict organisational citizenship behaviour in

developing economies such as Pakistan.

Achieving better employee performance has been a significant focus for both private

and public organisations. Hence there is need to investigate how human resource (HR)

practices impact upon organisational citizenship behaviour (OCB). This research will

focus on three HRMP i.e. reward management system, promotion practices and

performance appraisal system, and the influence of national culture and organisational

culture on OCB. This study examined the factor structure of reward management

system, promotion practices, performance appraisal system, national culture,

organisational culture and OCB in a sample of administrative employees working

within public sector universities in Pakistan.

A mixed methodology was used to investigate HRMP and their impact on OCB and to

examine the correlational paths. Using a survey method, data was collected from 515

employees working in 5 public sector universities in Pakistan and semi-structured

interviews were conducted with officials of these universities. The overall response rate

was 56.5% (i.e. 515 out of 910). After data-screening, the final model was tested with

420 subjects. Principal component analysis was used to determine the underlying factor

xxvi

structures employing SPSS 19.0 followed by the regression analysis and multivariate

analysis of variance (MANOVA) at the first stage. Hypothetical relationships were

examined with analysis of moment structures (AMOS v.21) at the second stage and the

study findings indicated that the extended model achieved good-fit for a four factor

model and most of the hypothetical paths were significant. Specifically, out of 13

hypotheses, 12 were supported leaving 1 as unsupported. The final model supported a

theoretical framework that is inclusive of four factors: human resource management

practices (reward management system, promotion practices and performance appraisal

system), national culture, organisational culture and OCB. The study findings revealed

that HRMP significantly impact OCB directly and with the influence of national culture.

Whereas, organisational culture had no impact on OCB, although HRMP significantly

impacts organisational culture.

Confirmation of HRMP influence on OCB, as identified in this research, is important

for policy makers in developing countries as it contributes to increased employee

performance and organisational efficiency, benefiting both employees and organisations.

This research adds to the body of knowledge by validating the nomological factor

structure of HRMP, national culture, organisational culture and OCB in universities of

Pakistan and enriching understanding of HRMP from the employees’ point of view.

This study demonstrates the structural parameter estimates representing relationship

between the constructs of the study. Finally, based on the findings, limitations and

implications for theory and practices are devised.

1

Chapter One

Introduction

1.1 Chapter Overview

This chapter presents a detailed introduction to the study and its context. It begins with

an introduction to the topic in the first section and presents, background information

related to the country in which the study was undertaken in section two. Sections three

and four outline the theoretical background and context of the study and describe the

constructs of the study. The fifth section presents the theoretical model. The following

three sections, sections six, seven and eight, provide the research problem, research

objectives and outline the research question. Section nine consists of an overview of the

research methodology of the study, followed by the tenth section, which describes the

anticipated outcomes. The final two sections, sections eleven and twelve, provide an

overall outline of the thesis structure and a brief conclusion.

1.2 Introduction

New fields of knowledge, increasing technological advancements, online automation,

and the recent trends of globalization have compelled organisations to pay more

attention to Human Resource practices and to set more exacting standards of excellence

and perfection. In the early 1970s, organisations were operating in a stable environment

with distinctive domestic markets and with fewer complexities. The real shift in the

management of human resources in the organisation occurred in the 1980s when it went

from relative insignificance to its current accepted strategic importance.

2

The field of human resource management (HRM) has been expanding and becoming

more linked with the strategic needs of the business and has been characterized by a

dynamic global economy with cut-throat competition, advanced information technology

and the expansion of emerging economies (Anakwe, 2002; Kipkebut, 2010; Schuler,

Dowling, & De Cieri, 1993). In organisations challenges are inevitable i.e. retention of

competent employees, ensuring best practices, policies and procedures, developing

positive working environments and responding to technological, economic, socio-

cultural and socio-political factors. The organisation’s survival depends upon how it

manages human resource practices and their implementation in an effective manner,

(Anakwe, 2002; Kipkebut, 2010).

The economic slow-down has impacted on both developed and developing countries.

Economic crises have brought challenges such as inflation, higher rates of

unemployment, layoffs and downsizing which are heavily affecting organisational

success. The main purpose for any organisation is to achieve better performance

through efficient completion of tasks, commitment and motivation of employees. The

participation of motivated employees involves emotional, cognitive, behavioural

energies and coherence in working to achieve organisational objectives (Andrew &

Sofian, 2011). According to Bakker, Albrecht, and Leiter (2011) organisational

performance and effectiveness is a function of the mutual efforts of engaged employees

who experience more attachment and do things which enhance organisational

effectiveness.

HRM covers a wide range of areas. However, this study will introduce the general

nature of HRM practices in a developing country, Pakistan, and analyse the relationship

3

between reward management systems, promotion practices and performance appraisal

systems and their impact on organisational citizenship behaviour in public sector

universities of Pakistan.

1.3 Background to the research: The Islamic Republic of Pakistan

The Islamic Republic of Pakistan is classified as an under developed country on the

worlds mental map. With an estimated population of 197,361,691 (Including Azad

Jamoon Kashmir) as of mid 2011 census, ("International The News," 2012). It has the

world's sixth largest population and has the second largest Muslim population after

Indonesia. Pakistan comprises four provinces namely Sindh, Balochistan, Khyber

Pakhtunkhwa and Punjab.

Figure 1.1 Map of Pakistan

Source: (National Geographic)

Province where this

research was conducted

4

The province of Sindh, also known as 'Mehran' (River) and 'Indus Valley', is the second

most densely populated province of Pakistan, with approximately 55,245,497

inhabitants. It has over 5000 year’s recorded history of civilization. Within Sindh

province Thatta, Matiari, and Chotyarion were considered the educational centers of

their time. However, Karachi, Hyderabad, Sukkur, Larkana and Jamshoro are the new

educational hubs for the people of Sindh province. The biggest and coastal city of

Karachi is its provincial capital.

1.3.1 Economy

Pakistan’s economy is based primarily on agriculture. However, recently the country's

economic structure has begun to shift towards the manufacturing and service sectors.

Per capita income of the country was 3.5% and GDP was 13.99% in 2013-2014. In

order to accelerate economic growth the government of Pakistan is focused on global

developments through competitiveness, productivity, innovation and entrepreneurship.

The Pakistani economy is relying on the banking system to meet their financial needs,

but capital markets are relatively slow in developing (Ministry of Finance Government

of Pakistan, 2014). Consumption, investment and export are the three main drivers of

economic growth in Pakistan. Pakistani society is a consumption oriented society,

having a high marginal tendency to consume (Ministry of Finance Government of

Pakistan, 2014).

5

1.3.2 Education

The Government of Pakistan recognizes education as a basic human right and primary

education is compulsory, but there continues to be a low level of compliance with many

children not enrolled at school. However, only a small percentage of the budget is spent

on education, which results in a shortage of resources. Pakistan has one of the lowest

levels of spending on education amongst South Asian countries as shown in Table 1,

which has affected the quality and availability of education in Pakistan (Ministry of

Finance Government of Pakistan, 2014).

Table 1.1 Public Sector Spending on Education

Country Spending (As % GDP)

Bangladesh 2.4

Bhutan 4.8

India 3.1

Iran 4.7

Maldives 11.2

Nepal 4.6

Pakistan 2.0

Sri Lanka 2.6

Source: CIA World Fact Book

(Ministry of Finance Government of Pakistan, 2014).

There is an embedded assumption in the community that a low budget, corruption and

mismanagement have led to poor educational outcomes and have resulted in

6

inefficiency in the education sector during the last 10 years. In Pakistan education is

available at five levels, from Primary, Middle, Secondary School Certificate (SSC),

Higher Secondary Certificate (HSC) and University programs leading to Graduate, Post

Graduate and Advanced Degrees.

According to reports compiled by the Daily Dawn Newspaper half of the population of

Pakistan is illiterate and it has the highest number of school aged children who are not

engaged in primary or tertiary education. It also suffers gender disparity at all levels of

education. The government of Pakistan is responsible, as the largest provider of

education, but the failure of the educational sector of Pakistan has resulted in poor

quality public education. Due to the failure of public sector education the private sector

has emerged and flourished. But unfortunately there is no mechanism or control system

for the overall quality of education in Pakistan ("Daily Dawn Newspaper Karachi

Pakistan," 2012).

1.3.3 Public Sector Universities in Pakistan

The reform in higher education has brought economic diversification to Pakistan.

Industrial and technological development has rapidly increased since the country’s

independence in 1947, particularly in the late 60s and early 70s. As an agricultural

country, development in the agriculture sector has dominated policies for education,

meaning the agriculture and industries sector have a very close relationship. So as the

requirements of agricultural and industrial education increased it resulted in the

establishment of dedicated agricultural and engineering universities alongside the

general purpose universities.

7

There are approximately 99 registered educational institutes (universities) working in

Pakistan out of which 17 are public sector universities/degree awarding institutes

providing education in the province of Sindh, which caters for the needs of higher

education for around 29% of the population of Pakistan. The majority of these

universities are lacking effective HR practices and do not have independent HR

departments (Higher Education Commission Pakistan, 2015).

1.3.4 Human Resource Management Practices in Pakistan

The establishment of different types of universities required the availability of

appropriate teaching and non teaching staff. This requirement was fulfilled with the

correct management of the human resources, and resulted in the demand for fully

operational Human Resources Management (HRM) departments.

Human Resource Management was made responsible for all staff related activities such

as hiring, accommodation, remuneration, benefits and ongoing training of faculty and

staff members of the organisation. Previously, only one division of the administration

was responsible for a few human resource activities. This is now changing, with the

development of Human Resource Departments with more functions involving all

aspects of Human Resources Management. According to Wilson (1992) HR must be

working in partnership with senior management to make sure people's needs are met by

building trust and the psychological contract.

Universities are human capital intensive organisations and individuals are being

considered an integral part of every organisation. Human resources have become the

unique source of sustained competitive advantage for every organisation as they meet

8

the criteria of being valuable, rare, unmatched and non-substitutable (Wright,

McMahan, & McWilliams, 1994).

Although a considerable amount of research into HRM in the university context has

been undertaken, it is mainly focused on developed countries. Very little attention has

been paid to developing countries like Pakistan. Researchers such as Tessema and

Soeters (2006), Wright, Gardner, and Moynihan (2003), and Park, Mitsuhashi, Fey, and

Bjorkman (2003), report that there is a positive link between HR practices, the

organisation and employees performances.

Universities in Pakistan have shown tremendous growth over the last decade. Owing to

continuous efforts of the Higher Education Commission of Pakistan (HEC), universities

are gaining more attention both at local and international level. Many activities

performed under human resource management within the five “P’s” (“HR Philosophy,

Policies, Programs, Practices, and Processes”) aim towards the utilisation of individuals

to achieve organisational objectives and goals (Schuler, 1992, p. 2).

1.3.5 The Context of the Study

It has been noted that research on HRM is largely confined to developed countries.

There is a need for HRM research in public sector education - a sector of prime

importance for developing countries like Pakistan. This research discusses the HR

practices and employees’ relationships in the context of three dimensions of HR

practices: reward management, promotion and performance appraisal and their impact

on organisational citizenship behaviour in the public sector universities of Sindh,

Pakistan. These practices are affected by monetary policies, environmental uncertainties

9

and political instabilities; conditions which are evident in developing countries such as

Pakistan. There is a realization of the fact that ‘workforce development has become a

critical issue in enabling universities to deliver multiple agendas in complex

environments’ (Gordon & Whitchurch, 2007, p. 136). Universities being an integrated

‘project’ in which the multiple agendas can only be achieved by a series of contributions

from different groups of staff (Duke, 2003; Gordon & Whitchurch, 2007). HR and top

management are attempting to understand how they might interface most successfully

with line managers (Knight, Tait, & Yorke, 2006).

Although in the recent past the Government of Pakistan has taken serious steps in the

growth and development of the higher education sector through investing in faculty

development programs and infrastructure facilities; the education system and policies of

Pakistani universities are strongly influenced by political intervention and policies. As

universities are governed by the higher education commission (HEC) of Pakistan in the

large public sector universities the majority of HR decisions are made by government

appointed or nominated committees (Khilji, 2004). HRM research is still in a state of

infancy, in Pakistan and Qadeer, Rehman, Ahmad, and Shafique (2011), point out that

public and private universities of Pakistan have little integration and devolvement of

HRM despite acknowledging that the HR department is the main player.

1.4 Theoretical Background: Institutional Theory

Accurate theories fulfill the objectives of prediction (knowledge of the outcome) and

understanding (knowledge of the process) regarding the relationships among the

variables of interest. A strong theoretical model has a great value (Wright & McMahan,

10

1992, p. 296). This study applies institutional theory to describe the determinants of

HRM practices.

Today, organisations are experiencing a great deal of pressure not only to adapt but be

consistent with the institutional environments (Bjorkman & Gooderham, 2006).

However, different theorists view institutional theory differently, but most of them are

interested to understand the bases of socially constructed norms, meanings, beliefs and

rules exercised in the organisation (Powell & DiMaggio, 2012; Scott, 2001; Scott, 2013).

One of the central assumptions in institutional theory is that organisations become

‘isomorphic’; members of the same organisational field share the same environment and

the same systems of meanings (Bjorkman & Gooderham, 2006; DiMaggio & Powell,

1983). Isomorphism is produced in three ways: coercive, mimetic and normative. In the

coercive isomorphism rules are imposed by the government in the organisations; in the

mimetic isomorphism organisations adopt contingency rules in the situation of

uncertainty; and in the normative isomorphism organisations disseminate appropriate

organisational patterns which are adopted by other organisations such as universities,

professional interest organisations and consultancy firms (DiMaggio & Powell, 1983).

These isomorphisms are also known as, regulatory mechanism, cultural cognitive and

normative process (Scott, 2001). According to Scott (2001) institutional theory or

institutionalization is the process in which repeated activities are given common

meanings. The institutionalization process has three stages: (1) pre-institutionalization,

(2) semi-institutionalization, (3) full institutionalization.

The institutional theory initially gained prominence in the 19th century and in early 1990

its applicability was recognized by HRM scholars (Najeeb, 2014; Scott, 1995). The

11

common characteristic of institutionalism in various disciplines is that ‘institutions

matter’ (Kaufman, 2010). Therefore, ‘organisational practices are either a direct

reflection of, or response to, rules and structures built into their larger environment”

(Paauwe & Boselie, 2003, p. 59). The reason behind adopting the institutional theory is

its relevance to HRM practices. Very early Meyer and Rowan (1977) suggested that the

institutional environment is the source for legitimacy and recognition by defining

practices adopted in their environment, for example, rewards, incentives, constraints and

other organisational activities (Bjorkman & Gooderham, 2006).

1.4.1 Human Resource Management Practices

Ahmed (1999) views HRM as a strategic approach for any organisation to acquire,

motivate, develop and manage employees and gain their commitment. Snell and Dean

(1992) argue that HR practices are an investment in human capital management which

is a key resource for any organisation. Effective organisations focus on three tasks: their

employees must carry out assigned responsibilities, they want to retain effective

employees, and they expect innovative ideas and spontaneous activities from the

employees beyond their assigned roles to improve the business of the organisation while

keeping market challenges in mind (Katz, 1964).

Historically, Bakke (1967) argues that human resource management is just a part of the

general management function, and gives principles for an effective approach to this

function. He views the general role of management as the efficient use of resources

(money, materials, market, ideas, nature, and people) to achieve organisational

objectives. In his view poor management of any one of these resources would affect the

performance of the whole organisation. Thus, he argues that "attention to the human

12

resource is required not because managers are humanitarian, but because they are

managers" (Bakke, 1967, p. 198).

Until the late 1960’s the term "human resource management" did not appear much in

academic writings. However, the concept of human resource management was

popularized in management circles in 1970. Pyle (1970, p. 19) stated "The importance

of human resources to the success of an enterprise is widely acclaimed in corporate

pronouncements" and HRM emerged as a distinct school of thought by developing a

human resource accounting theory (Storey, 1995a). Storey (1995a) defines HRM as

personnel management and industrial relations, which some consider as an approach for

the integration of people management with business strategy. Tessema and Soeters

(2006) have discussed eight HR practices and their relationship with perceived

employee performance. These practices include recruitment and selection, placement,

training, reward management, employee performance appraisal, promotion, grievance

procedure and lastly the pension/social security. Huselid (1995) discussed eleven HRM

practices, the additional practices including job design, information sharing and attitude

assessment.

A number of HR practices discussed by Tessema and Soeters (2006) and Huselid (1995)

as mentioned above can be tested in relation to employee performance. But this study

examines the relationship between three HR practices i.e. reward management systems,

promotion practices and performance appraisal systems and their impact on

organisational citizenship behaviour. The Islamic Republic of Pakistan is considered an

under developed country with a very low per capita income and these three practices

which have an impact on financial earnings and communal status of people, may be

13

considered the major determinants of employee’s performance. This is the reason these

practices have been chosen for this study.

1.5 Constructs of the Study

This section outlines the constructs of the current study: Reward Management System,

Promotion Practices, Performance Appraisal System, National Culture, Organisational

Culture and Organisational Citizenship Behaviour.

1.5.1 Reward Management System

Reward management is simply defined by Drucker and White (2000, p. 1) as “the

management of remuneration systems”. It is a method of implementing strategies and

developing systems through which organisations achieve their objectives while

attracting, motivating and retaining employees (DeGieter, DeCooman, Pepermans, &

Jegers, 2008). Rewarding employees is an exchange process between employer and

employee, where employees perform their task in return for receiving rewards (Perkins

& Vartiainen, 2010). The term ‘reward’ is used in the literature very frequently. On the

one hand ‘reward’ is treated as an incentive to the employee in return for the

contribution of their services. On the other hand, it is an expense to the organisation.

Highly skilled employees may become poor performers if not motivated; and for better

performance motivated employees require rewards (Delaney & Hussield, 1996). The

reward system increases performance in the interest of the employee and the

organisation equally. Better reward systems improve the performance of an employee

which results in increased productivity of the organisation (Shah, Warsi, Naeem, &

14

Chaudhry, 2011). A reward can be of extrinsic or intrinsic value. An extrinsic reward

includes salary, bonuses, benefits or promotion and physical working conditions.

Intrinsic reward is associated with a person’s soul and spirit including factors like

autonomy, challenges and variety in the job context (Shah et al., 2011).

The rewards should have a lasting impression to substantiate the employee’s perception

that they are valued. In this regard, Frye (2004) argues that human capital is the most

critical asset for any organisation. To attract human capital an organisation needs to link

its incentive system with organisation performance. The loss of valuable human capital

due to poor incentives may be very costly. Frye (2004) found a positive relationship

between equity based compensation and firm performance. He pointed out that for

human capital intensive organisations compensation plays a vital role in attracting and

retaining highly skilled employees.

1.5.2 Promotion Practices

Organisations use promotions to give incentives to valuable employees in return for

their hard work, and at the same time to fill higher level positions. Promotion provides

an incentive for an employee to learn new skills and to engage in additional training that

results in permanent earning differences (Bimbaun, 1976; Deborah, Clark, & Dunlop,

1990). Armstrong (2003) suggests two important considerations for promotion

procedures in organisations; (1) to enable management to obtain the best talent available

in the organisation to fill senior positions; and (2) to provide an opportunity for

employees to advance their careers in the organisation in accordance with the

opportunities available and their abilities. The internationally successful company

Hewlett-Packard (HP) has a policy that promotes and develops from within (Truss,

15

2001). Tessema and Soeters (2006) argue that there is a positive correlation between

promotion practices and perceived employee performance in that performance was

shown to improve when staff felt that this would most likely lead to promotion. Park et

al. (2003), argue that efficient HR practices like merit promotion can lead to higher

performance in an organisation.

Career moves are analyzed from two dominant aspects, (1) efficient allocation of skills

for the tasks i.e. job related training that increases worker’s skills, and (2) promotion as

an incentive effect of rewarding performance that includes accumulation of specific

human capital. Attainment of skills which are required for higher responsibility jobs

results in promotion. For example, it can be seen in the hierarchy of different jobs of

prospective workers (Melero, 2010).

Promotions are mainly based on two procedures: the initial assessment of the

employee’s ability that includes interview, tests or examination of Curriculum-vitae and

job performance after entering an organisation (Hahn, 2009). Procedures for promotion

may vary in organisations. In most Asian countries the initial evaluation score is

preferred over the performances after entering the organisation. For example a graduate

from a renowned university of Asia or from USA, UK and Australia is more likely to be

promoted without consideration of their performance after entering the organisation. In

this situation employee’s competition for a promotion may be biased towards the

selection of an employee for promotion. Although competition does make employees

work harder (Hahn, 2009).

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Promotions can increase self-esteem, create trust and empowerment which have a

positive association with intrinsic motivation (Deci & Rayan, 1985). Promotion plays a

central role in creating incentives for employees and the prospect of promotion

increases the level of extrinsic as well as intrinsic motivation (Herpen, Cools, & Praag,

2006).

1.5.3 Performance Appraisal System

Performance appraisal is one of the practices used in the organisation to evaluate and

rate an employee’s performance for a particular job. Murphy and Cleveland (1995) state

that performance appraisal is typically conducted as a formal, discrete event once or

twice in a year, for two reasons, (1) to assist with administrative decisions like

promotions and pay raises, and (2) to assist in employee’s development by identifying

training opportunities and areas for improvement.

A well designed system of performance appraisal can help to motivate staff. For

example, identifying proficient staff and rewarding them can result in better

performance. Generally, organisations desire that employees should be working towards

achieving goals for its success and employees desire to remain in the organisation if

they are kept motivated. Both employee and employer commitment is based on

motivation which directly impacts on performance (Mundhra & Jacob 2011).

Performance appraisal may have twofold objectives one is to measure employee

performance while the other is to measure how HR performance contributes to

organisational goals. According to Brown and Hewood (2005) performance appraisal

represents a formalized process which is used for worker monitoring, evaluating job

17

performance and is intended to be a management tool to improve the performance and

productivity of workers.

Brown and Benson (2003) and Brown and Hewood (2005) also believe that with the

help of performance appraisals an employee’s commitment and productivity can be

improved, with appropriate explanation and supervision of performance leading to

higher job satisfaction and professional commitment.

Formally, performance appraisals are used for many purposes such as promotions,

demotions, retentions, transfers, evaluating training need, psychological tests and

developing executives (Kindall & Gatza, 2009).

Appraisals can be instrumental for the organisation in order to achieve its objectives if

they are performed correctly and logically (Alireza, 2000). The organisation’s success

depends upon the motivation of employees by their directors hence; performance

appraisal systems are the most popular tool used for reforming activities to motivate

staff for improved services (Saibou, 2011). Recognizing highly skilled employees and

rewarding them appropriately for their hard work in order to motivate, retain and

improve their performance, are among the important aspects of performance appraisal.

There are different types of appraisal methods such as, Trait-Focused Performance

Appraisal, Behaviour-Focused Performance Appraisal, Unstructured Method, Straight

Ranking, Paired Comparison, Grading and Checklist, Management By Objectives,

Psychological Appraisals and 360-Degree Feedback. However these types of appraisal

systems can be classified into two categories (1) individual appraisal methods, and (2)

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annual confidential reports to check the employee’s weaknesses and strengths in

performance (Saibou, 2011).

1.5.4 National Culture

Research has shown that due to cultural differences, all Human Resource (HR) tools

and techniques cannot be applied in the same way in each and every country.

Consequently, before such techniques are applied in a particular cultural context they

should be investigated for appropriateness in that culture or organisational environment.

This is because culture is always a man-made component of any society (Muduli, 2011).

It reflects the way people live, their traditions, custom and design for living. Singh

(2009) says that sociologists, psychologists and theorists are concerned with the popular

constructs of national, organisational and societal culture. For example Kroeber and

Kluckholm (1952, p. 357) described culture as "a body of learned behaviour, a

collection of beliefs, habits and traditions shared by a group of people and successfully

learned by people who enter the society". Hofstede (2005, p. 282) discussed culture as

"the collective programming of the mind, which distinguishes the members of one

group from another…culture in this sense, includes a system of values".

National culture has increasingly become a key construct. It refers to the set of shared

norms and beliefs amongst individuals within nationalized boundaries that are local to a

specific area (Muduli, 2011). This seems to suggest that culture is the nucleus around

which values revolve. Hence, domestic managers of companies are deemed to be

responsible for being familiar with differences in national culture and their influence on

the effectiveness of the HR practices and policies (Muduli, 2011).

19

Research demonstrates that there are different approaches to investigating cultural

influence on HRM practices due to the variations of HRM practices across countries

(Milikic, 2009). Many authors confirm that culture has an important impact on

managing people, therefore differences in management or HRM practices are to be

expected (Milikic, 2009; Newman & Nollen, 1996; Trompenaars & Hampden-Turner,

2004).

1.5.5 Organisational Culture

Organisational environments can differ across countries in a range of areas such as rules,

regulations, institutional set up, market, work force characteristics and culture. Different

countries impose significant limitations on organisations: what they can and cannot do.

This leads to greater localization and greater variance between-country than within-

country variance (Gerhart, 2009).

Organisational culture along with relevant HR practices can be a factor, used by the

organisations to create values and uniqueness themselves (Barney & Wright, 1998). The

claim that organisations mirror the national culture of the country where they are

located is useful in clarifying issues of constraint and management discretion in

organisations. Organisations are compelled to respond and adapt to environmental

pressures to follow accepted ways of doing business to be considered legitimate by their

customers and investors. With certain scenarios, the institutional influences like

industry specific or country specific are expected to create similarities, across the

organisation, in their structure and practices, (Gerhart, 2009).

20

Organisational culture is constrained by the national culture (Hofstede, 2001). This

argument is supported by Johns (2006) who views national culture as a ‘contextual

imperative’ which constrains the organisational culture. These claims also fit with the

institutional theory, but are in contrast with the perspectives for weighting

management’s choice and the role of uniqueness for sustained competitive advantages

such as the resource based view (RBV) (Gerhart, 2009).

However, RBV focuses on and prioritizes the importance of organisation’s strategy

research, (Hoopes, Madsen, & Walker, 2003). RBV emphasizes how an organisation

becomes different or is different ‘looking inside’ with its rare and distinctive resources

and capabilities for its sustained competitive advantages (Barney, 1991; Carmeli &

Tishler, 2004). Hence, RBV leads to greater variance in organisational practices and

attributes and supports being different (Gerhart, 2009). As an example it has been

observed by Barney and Wright (1998) that an important implication of RBV is seen in

managing the resources such as ‘human capital skills’, ‘employee commitment’,

‘culture’ and ‘teamwork’ for a sustained competitive advantage. The role of culture and

related concepts like distinctive values, non-substitutability and ideology are

highlighted in the academic studies as characteristics that help organisations to perform

better (Collins, 2001; Denison, 1990; Kotter, 2008). As Lawler (2003, p. 35) says “the

organisational design elements of people, structure, rewards, and processes lead to …

corporate culture”.

Moreover, Chan, Shaffer, and Snape (2004), say that organisational culture greatly

influences the way HR policies and practices are implemented. For example

bureaucratic cultures discourage employee initiative and employees are asked to follow

21

desired rules and regulations with little or no room for innovation or risk taking.

Generally in Asian firms, particularly public sector work, with an autocratic leadership

style and high power distance characteristics, rewarding innovation is hard because of

little empowerment and a bureaucratic environment (Prabhu, 2005). In developing

nations harmony is highly valued in social and work relationships and effort is taken to

avoid open conflicts in comparison to the developed nations (Rhodes, Walsh, & Lok,

2008).

1.5.6 Organisational Citizenship Behaviour

Organisational citizenship behaviour (OCB) is one of the most widely studied topics in

organisational behaviour research (Emmerik, Jawahar, & Stone, 2005; MacKenzie,

Podsakoff, & Fetter, 1993). The concept of OCB was initially introduced by Bateman

and Organ (1983), who defined OCB as “individual behaviour that is discretionary, not

directly or explicitly recognized by the formal reward system, and that in the aggregate

promotes the effective functioning of the organisation”(Organ, 1988, p. 4).

Research has been undertaken on OCB in both western and non western countries as a

multidimensional concept (Jahangir, Akbar, & Haq, 2004). Extensive research has been

focused on the effects of OCB on individual and organisational performance resulting in

general agreement that OCB addresses silent behaviours of organisational enterprises

(Barbuto, Brown, Wilhite, & Wheeler, 2001). The survival or prosperity of

organisations appears dependent upon employees behaving as good citizens by

engaging in a variety of positive behaviours (Organ, 1988).

22

OCB has been identified with five distinct dimensions: (a) conscientiousness, or

discretionary behaviour (b) altruism, or helping a specific other person with an

organisationally-relevant task or problem; (c) civic virtue, which is behaving or

indicating willingness to responsibly participate in the life of the company; (d)

sportsmanship, which is any behaviour demonstrating tolerance of less than ideal

circumstances without complaining; and (e) courtesy, or efforts to prevent work-related

problems with others (Organ, 1988; Podsakoff, MacKenzie, Moorman, & Fetter, 1990).

Considering the importance of good citizenship for organisations, OCB has received

considerable attention and has remained a high priority for organisational scholars. This

is particularly important in the context of the growing service imperative facing

organisations (Organ, 1988; Schneider, 1990). Organisations are increasing their focus

on improving customer service with a realization that eliciting customer oriented

behaviour from employees is critical. Thus service oriented behaviours are forms of

OCB (Morrison, 1996; Schneider, 1990). Though many behaviours are difficult to

specify and ensuring behaviours through HRM techniques such as training, job

description and reward is hard, OCB is a behaviour which is beneficial for an

organisation despite the difficulties of formally specifying or rewarding it (Morrison,

1996).

The aggregate level of OCB behaviour demonstrated by the employees will have a

positive effect on the quality of service that an organisation delivers (Morrison, 1996).

Organ and Ryan (1995) noted that primarily research on OCB focuses on motivating

employee level variables such as attitudes, perceptions and personal dispositions. This

23

research provides guidance to the organisations on encouraging OCB to improve

services (Morrison, 1996).

Feldman (2001, p. 164) discussed that ‘in an organisational context, discretion has been

defined as an individual’s right to make choices based on an authoritative assessment of

the situation’. This suggests direction that job discretion adds to employee’s sense of

responsibilities regarding work that results in better outcomes and enhances their

willingness to go the ‘extra mile’ to do the tasks (Snape & Redman, 2010). Low job

discretion can result in employees developing a sense of ‘learned helplessness’, and

‘reduced industriousness’ which results in poor performance and low participation in

citizenship behaviour (Eisenberger, 1992; Miller & Seligman, 1975).

1.6 The Theoretical Model

Based on the theoretical background discussed above, the following research model was

developed (Figure 1.2).

24

Figure 1.2 Theoretical Model

Reward

Management

System

Organisational

Citizenship

Behaviour

Promotion

Practices

Performance

Appraisal System

Organisational

Culture

National Culture

25

1.7 Research Problem

Pakistan is a developing country. Due to its poor economic conditions and unstable

governments a very limited percentage of the budget has been spent on the education

sector which has resulted in a poor and inadequate system in public sector universities.

However, to reach international standards of education and match the competition of

world ranking universities strenuous effort is required. Many public sector universities

are still working without HR departments. Therefore, HR practices and policies are not

made fully functional and operational in the public sector universities of Sindh

province.

There is a paucity of research on the HRM practices and their impact on organisational

citizenship behaviour in the public sector universities of Pakistan. Aycan (2005) says it

is very much needed to develop an environment where people can take initiatives to

make HRM practices and procedures more clear. However, each HR practice has

different dimensions and varies in importance, but should be working with an ultimate

goal to improve performance of both employees and the organisation.

In Pakistan human resource management needs special attention and due care, although

some actions has been undertaken to address the issues relating to manpower. HRM

practices and their implementation and utilisation in public sector universities of

Pakistan are yet to be standardized across the universities.

Intensive efforts are needed in Pakistan for research. Very limited research has been

carried out in Pakistan with respect to HR practices which have resulted in poor

management of human resources. There is a dire need to examine how HR practices are

26

implemented and utilized in the university context and to investigate the important

aspects of HR in order to enhance the employees’ performance, particularly to explore

the HRM practices and their impact on organisational citizenship behaviour in the

public sector universities of Pakistan.

1.8 Research Objectives

The primary objective of this research is to investigate how HRM practices impact upon

organisational citizenship behaviour in Pakistani universities. The specific objectives of

the study are as follows:

to study the general HRM practices in Pakistani universities;

to analyse the impact of HRM practices such as reward management, promotion

practices and performance appraisals on organisational citizenship behaviour;

to identify the factors that can increase employee performance in the public

universities; and

to identify the relationship between the HRM practices of reward management,

promotion practices and performance appraisals.

1.9 Research Questions

This research seeks to answer the following exploratory questions:

1. What is the impact of HRM practices on employees’ citizenship behaviour in

public sector universities in Pakistan?

2. What is the relationship between HRM practices of reward management,

promotion and performance appraisal, and employee performance in the public

sector universities of Sindh, Pakistan?

3. What is the relationship between demographic variables and HRM Practices?

27

1.10 Methodology

This section outlines the methodology used in the current study.

1.10.1 Research Paradigm and Method

A mixed method qualitative and quantitative research approach was adopted for this

research. The research focused on the administration of a survey questionnaire and

semi-structured interviews. The basic aim of mixed method research is to combine

methods in a way that considers the strengths and weaknesses of each method (Johnson

& Turner2003).

1.10.2 Questionnaire

The distribution of the questionnaire was administered by the researcher and access was

gained with the help of personal contacts. The questionnaire included 138 questions. It

was divided into 7 sections, e.g. demographic, reward management system,

performance appraisal systems, promotion practices, organisational culture, national

culture and organisational citizenship behaviour. Each section comprised potential

responses ranging across a five point Likert scale e.g. strongly disagree, disagree,

neutral, agree and strongly agree.

The participants were full time (regular) employees from 5 universities of Sindh.

Officer grade 17 to 19 and clerical staff grade 11 to 16 being the focus. Validated

measures/questions were used. The questionnaires were distributed in English however,

translation was provided for certain terminologies on HRM in order to avoid any

ambiguity in the measurement scales.

28

A pilot study was conducted to test the validity of questions in the questionnaires. The

confidentiality of the participant was assured and, in the questionnaire no name or

signature of the participant was required.

1.10.3 Interviews

The interviews were conducted with top management of the universities such as Vice

Chancellor, Pro Vice Chancellor or Registrar. Each interviewee was contacted for an

appointment through personal contacts, and interviews were of 45 to 60 minutes and

used questions that were semi-structured, with 25 to 30 questions prepared to maintain

consistency. However, minor changes were made for probing to get deep information

and data.

Interviews were voice recorded and transcribed, allowing the interview to proceed

unimpaired of note-taking, but with all information available later for full analysis.

1.10.4 Population

The population for this study included employee(s) working in the administration of

public sector universities of Pakistan. Namely 5 public sector universities in the

province of Sindh, Pakistan. For each university, the employees were divided in three

groups:

(1) Officer grade 20 to 22 (management/authority) minimum 2 from each university

and in total 12 to 16.

(2) Officer grade 17 to 19 (middle management) minimum 40 from each university

and in total 240 to 320.

29

(3) Staff grade 11 to 16 (clerical/ lower staff) minimum 125 employees from each

university and in total 750 to 1000.

1.10.5 Sampling Design

Participants were selected randomly for the above categorized groups. Group (1) was

interviewed and included Vice-Chancellor and Pro-Vice Chancellor or Registrar of the

university. However, groups (2) and (3) were given questionnaires. The distribution of

questionnaires was conducted in person and using personal contacts to gain access to

the universities.

The data from the questionnaire was collected first from groups (2) and (3). Then the

interviews with management/ authority group (1) were conducted. The interviews were

conducted last because the data collected through the questionnaires provided

information or issues to be raised with the interview participants.

1.10.6 Research Instrument and Measures

Reliable and validated measures that have been used in past research have been

identified for each of the variables in this model.

Reward Management system: was measured using thirteen items developed by Husin,

Chelladurai, and Musa (2012). Alpha ranges between 0.76 to 0.87.

Promotion Practices: were measured using eight items developed by Krivokapic-Skoko,

O’ Neill, and Dowell (2009). Alphas range above 0.60.

30

Performance Appraisals: were measured using forty-six items developed by Whiting,

Kline, and Sulsky (2008). Alpha range 0.84.

National Culture: was measured using seventeen items developed by Keillor and Hult

(1999). Alphas ranges 0.77 and above

Organisational Culture was measured using twenty-four items developed by Cameron

(2004).

Organisational Citizenship Behaviour: was measured using twenty-four items

developed by Podsakoff et al. (1990). Alphas range above 0.70

All alpha ranges were acceptable. The responses were required on five point Likert

scales (endpoints: 1 = strongly disagree, 5 = strongly agree).

1.10.7 Analytical Strategies

The data collected through the questionnaires was analyzed by using descriptive

statistics techniques. The demographic frequency, factor analysis, multiple regression

analysis and structural equation modelling were used to determine the strength of the

relationship between the independent and dependent variables. Organisational

citizenship behaviour was the dependent variable, which was tested for relationships

with the three HR practices: reward management, promotion and performance appraisal

that were considered as independent variables. For data analysis “SPSS 19” and

Structural Equation Modelling, AMOS was used.

31

1.10.8 Scope and Delimitations

This study has several limitations; firstly, it is limited in scope which will hinder

complete understanding of the phenomenon of HR practices and policies and their

impact. Secondly, only three HR practices were examined meaning only a partial

investigation of HRM practice in Pakistan could be made. Thirdly, a limitation of this

research is that it is confined to one region/ province. 8 interviews and 420

questionnaires from 5 universities provide a narrow focus which restricts the

generalisability and applicability to a larger population.

1.11 Research Outcomes and Contributions of the Study

In such fragile conditions it is very important to identify which determinants can

increase the employee’s performance in the public sector universities of Sindh, Pakistan.

The major objective of this research is to assist the authority/decision makers in the

public sector universities and the funding agencies to realize and understand the

importance of HR and to follow HR practices that can enhance the performance of the

employees. The output of this research could become a roadmap for HR managers of

both public and private sector universities in the formulation of effective HR practices

for better performance of employees and to set more exacting standards of excellence

and perfections in line with the top ranked universities of developed countries.

1.12 Organisation of Thesis

This study comprises six chapters. A brief description is given as follows:

1.12.1 Chapter 1 (Introduction): this chapter provides the introduction and background

of the research. Specifically, it presents the research objectives, research problem,

32

background to the research, theoretical background, constructs of study and expected

research methodology.

1.12.2 Chapter 2 (Review of Literature): this chapter presents an extensive overview of

literature/research providing a useful discussion for the context of the current research.

In addition this chapter highlights the gaps in the field relating to the aims and

objectives of this research.

1.12.3 Chapter 3 (Research Methodology and Design): Drawing on the literature review

presented in chapter two, this chapter presents as extensive investigation of the

methodological approaches related to this study. It provides an examination of the

research focused on the use of mixed method which included administration of a survey

questionnaire and semi-structured interviews. To have a balanced approach to exploring

employee(s) and employer(s) perspectives quantitative and qualitative methods were

used respectively.

This chapter outlines the conceptual framework explaining the thirteen hypotheses

tested, applying SEM using SPSS 19, and AMOS 21. It presents the analysis of

interview(s) themes and the main findings. Finally the chapter discussion of the

justification of the mixed methodology, statistical procedures, and triangulation,

followed by the conclusion.

1.12.4 Chapter 4 (Quantitative Analysis, Results and Discussion): this chapter reports

the results of the research based on the data collected through the questionnaires from

university administrative employees. Subsequently structural equation modelling (SEM)

33

analysis was applied using Analysis of Moment Structures (AMOS) to analyse the data

and to test the hypotheses. This chapter reports on the reliability and the validity of the

constructs used in the study. It presents the detailed synthesis and discussion about

findings that emerged from the analysis, and in doing so the findings of the study are

rigorously complemented with the literature review.

1.12.5 Chapter 5 (Qualitative Analysis, Results and Discussion): this chapter reports the

results of the research based on the in-depth data analysis undertaken using semi-

structured interviews followed by the identification of themes. It presents the detailed

synthesis and discussion about the findings that emerged from the analysis. Moreover,

this chapter provides an intensive discussion of the findings that emerged from the

interviews with the senior management of the university. In doing so, the findings are

rigorously complemented with the previous literature to rationalise the aims and

objectives proposed in the present study.

1.12.6 Chapter 6 (Conclusion, Limitations and Future Directions): this chapter

summarises the main findings of the study in terms of contribution and its limitations. It

also presents theoretical and managerial implications. Finally, delimitations and

directions for future research are offered.

1.13 Conclusion

This chapter has laid the foundation of the study. It has introduced the research context

and theoretical background, country profile, research objectives, research problem,

research questions and anticipated outcomes. In addition this chapter described the

methodology for the data collection and analysis of the results followed by the scope

34

and delimitations of the study. Finally, the research theoretical model was established

and presented and a framework of the entire thesis concluded the chapter.

35

Chapter Two

Review of Literature


This chapter will provide an extensive background perspective, importance of the

relevant literature and useful discussion of the context in which the current research has

been conducted. In addition, the chapter builds the foundation for developing the

conceptual framework. This chapter provides an introduction and general background to

the study, and presents a review of the prominent theories in human resource

management research, which are widely accepted as predicting and explaining

employee behaviour. Second the chapter focuses on three HR practices (1. reward

management systems, 2. promotion practices, 3. performance appraisal systems), and

national culture, organisational culture and their impact on organisational citizenship

behaviour. Finally this chapter discusses the relationship between the above mentioned

human resource management practices, and national culture, organisational culture and

organisational citizenship behaviour.

The next section of the chapter introduces the theoretical background relevant to

understanding human resource management practices. It examines the underpinning

concept of institutional theory, human resource management practices and cultural

context and transferability of human resource management practices.

36

2.2 Theoretical Background

This study is underpinned by institutional theory and contributes to the theory of

institutionalisation (Bjorkman & Gooderham, 2006; Kaufman, 2010; Najeeb, 2014;

Powell & DiMaggio, 2012; Scott, 2001; Scott, 2013).

2.2.1 Institutional Theory

In international HRM research institutional theory has been in use since the early 1990s

(Bjorkman & Gooderham, 2006). This theory was popularized after the argument of

Wright and McMahan (1992, p. 313) that “the idea of institutionalization may help in

understanding the determinants of HRM practices” and continues to be used to evaluate

HRM practices (Bjorkman & Lu, 2001; Fenton-O'Creevy, Gooderham, & Nordhaug,

2008). This theory has provided institutional arguments in comparative studies of HRM

practices in relation to different cultures and countries (Gooderham, Nordhaug, &

Ringdal, 1999). Institutional theory sheds light on a range of organisational phenomena

and addresses the issues in the field of international management (Kostova & Zaheer,

1999; Scott, 2013). Organisational institutionalism is referred to as institutional

practices or approaches of the organisation (Greenwood, Oliver, Suddaby, & Sahlin-

Andersson, 2008). Organisational institutionalism deals with the institutional

perspective about organisational behaviour (Najeeb, 2014). For analysing behaviour of

the organisation, institutional theory works as a tool or lens to measure inconsistencies

due to its emphasis on the procedural, historical and contextual aspects of organisations

(Currie, 2009).

According to Greenwood et al. (2008) institutional theory is a cure for the technocratic

and overly rationalist perspective of early days because of its relevance to a variety of

37

theories such as neo-classical economies theory, ecology theory, resource dependence

theory and more recently to structuration theory (Greenwood et al., 2008; Sayilar, 2009;

Scott, 2008). Institutionalism was first applied systematically in HRM by Paauwe and

Boselie (2003) who provided the following framework:

Figure 2.1 Institutional Mechanisms and Human Resource Management

Source: Paauwe and Boselie (2003, p. 61).

Coercive

Implementation as a

result of regulatory

pressures

HRM Strategy/

Policy/Goals

Mimetic

Imitation as a result of

uncertainty

Imitation as a result of

trends/fads

Normative

Management control system,

depending on the

professionalization of an

employee group

38

2.3 Human Resource Management Practices

As early as 1967 Bakke argued that human resource management was part of the

general management function, and identified a number of principles for an effective

approach to this function. Bakke (1967) contested that the efficient use of resources,

such as people, money and materials, was the primary role of a manager and was central

to achieving organisational objectives. The overall performance of the organisation

would be negatively affected if even one of these resources was mismanaged. He argued

that "attention to the human resource is required not because managers are

humanitarian, but because they are managers" (1967:198). Since then HRM has gained

increased recognition and importance.

The concept of human resources was popularized in management circles in 1970. When

Pyle (1970, p. 19) stated "The importance of human resources to the success of an

enterprise is widely acclaimed in corporate pronouncements" and it emerged as a

distinct school of thought with the development of a human resource accounting theory

(Storey, 1995a). Storey (1995b) argued that HRM differed from personnel management

and industrial relations and described this approach as integrating people management

and business strategy. HRM now incorporates a range of people management practices

including recruitment and selection, placement, training, reward management, employee

performance appraisal, promotion, grievance procedure, pension/social security, job

design, information sharing and attitude assessment (Huselid, 1995; Tessema & Soeters,

2006). All of which are thought to have a significant impact on employee performance

(Tessema & Soeters, 2006) providing direction for employees and firms simultaneously

(Fombrun, Tichy, & Devanna, 1984; Har, In, & Phaik, 2010; Mondy & Noe, 1993).

39

The value of human resources was confirmed in the 1980s when HRM research

indicated that firms should pay attention to employees and treat them as valued assets to

improve productivity and competitiveness (Yeganeh & Su, 2008). With the introduction

of HRM, firms’ learnt how to reduce turnover rates of effective employees and increase

their productivity level (Guthrie, 2001). The focus and contribution of HRM practices

continued to evolve.

According to Legge (1995) HRM is divided into two aspects: (1) ‘Soft’ which is

described as more ‘human oriented’ emphasising communication, commitment, skills

and leadership. Employees are viewed as valued assets that contribute to better

performance in the organisation. (2) ‘Hard’ which is focused on the quantitative

calculations of resources and considers the cost and numbers of employees required

(Storey, 1987). Moreover, many authors like Har et al. (2010), and Schuler (2000) attest

that effective strategies and operations are foundations for organisational success, of

which HRM is a key requirement for developing, executing and sustaining such

competitiveness.

The role of HRM can be defined as a range of policies with strategic significance,

designed to facilitate integration, commitment, flexibility, quality of working life, the

meeting of business goals and also changing organisational values, structure, and

productivity and delivery methods in the organisations where necessary (Brewster &

Tyson, 1991).

Ahmed (1999) viewed HRM as a strategic approach for any organisation attempting to

acquire, motivate, develop and manage employees and gain their commitment. Snell

40

and Dean (1992) argue that HR practices are an investment in human capital

management which is a prime resource for any organisation. Effective organisations

focus on three areas to improve the business of the organisation while keeping market

challenges in mind (1) the ability and willingness of employees to carry out their

assigned responsibilities, (2) retention of effective employees, and (3) innovative ideas

and spontaneous activities from the employees beyond their assigned roles (Katz, 1964).

Despite growing support for HRM as a unique source of competitive advantage,

improving organisational performances and contributing to success through developing

and delivering strategic roles, efficient services and facilitating organisational change, it

is primarily viewed as a cost to be minimized (Apospori, Nikandrou, Brewster, &

Papalexandris, 2008). Hence HRM faces the challenge of proving its usefulness in

organisational productivity and profitability (Apospori et al., 2008).

Adopting HRM practices can be beneficial, operational and motivational in improving

an organisation’s competitiveness, and attracting more qualified employees that

ultimately increase the productivity level of the organisation (Williamson, Cable, &

Aldrich, 2002). Consequently their legitimacy is enhanced. HRM systems have

recognised their importance (Bloom & Van Reenen, 2007), and that the adoption of

HRM practices has positive effects and is of special interest to organisations (Patel &

Cardon, 2010). International trends of business, globalization, deregulation, and

changing customer demands require that organisations continually improve their quality,

productivity and performance and HRM practices play a key role in realizing such

efficiencies (Becker & Gerhart, 1996; Stup, Hyde, & Holden, 2006).

41

Guest and Peccei (2001) and Patterson, West, Lawthom, and Nickell (1997) indicate

that employee commitment and satisfaction are associated with higher workplace

performance and that HRM has an effect on employees' attitudes and behaviour and

therefore employee performance. Employees work and life satisfaction is therefore a

result of the relationship between HRM practices and policies and work environment,

which if well designed and implemented can enhance performance (Guest, 2002).

Whilst the importance of HRM to organisational success is now widely recognized and

accepted, the growth in international and multinational corporations has presented

another set of issues and challenges for HRM. The significance of cultural differences at

the national and regional level has also been recognized for some time, particularly

since the seminal research into cultural differences conducted by Hofstede (1980b).

Human resource management is about the procedures and practices that cover the

human resource aspects within organisations (Al Ariss & Dessler, 2012; Obeidat, 2012).

Such procedures and practices should be connected to the overall strategy of the

organisation. Bratton and Gold (2003, p. 7) argued "the strategic approach to managing

employment relations which emphasizes that leveraging people's capabilities is critical

to achieving sustainable competitive advantage". HRM practices deliver progressive

career support and development to employees (Tan, 2008) and are classified as

programs for providing guidance to employees to gain career goals, skills, and interests

to establish career plans across the organisation (Hall, 2002). HRM practices enhance

retention, build morale of the employees and increase empowerment that results in

improved strategic outcomes for the organisation (Gutteridge, 1993). Zaleska and De

Menezes (2007) conducted a longitudinal study from 1997 to 2000 on employees from

42

six organisations in the UK and noted that there were substantial challenges for

organisations in understanding the changing needs of their employees and the

environment in order to support, guide and motivate them. A collaborative effort in

career related HRM practices benefits both employees and organisations (Tan, 2008).

HRM practices linked to career development increase employee organisational

commitment by establishing a psychological contract between an organisation and its

employees (Sturges, Conway, Guest, & Liefooghe, 2005). As a result of the

psychological contract, mutual trust, understanding and reciprocity of responsibilities

results in positive outcomes for both the employee in terms of promotion and

professional career development and for the employer in terms of better productivity

(Krivokapic-Skoko et al., 2009). Lippert and Swiercz (2005) noted that in the

knowledge economy, its human resources are the most crucial asset of the organisation.

The success of organisations relies mainly on the performance of their human resources.

Gorjup, Valverde, and Ryan (2008) highlighted the fact that promotion is not used in

isolation, but plays a part along with other human resource management practices in

supporting and creating more promotional opportunities.

In the current business environment many organisations have invested enormously in

HRM practices to boost their competitiveness and promote employees’ commitment.

Human capital is treated like any other capital and is being measured in terms of return

on investments (Innocenti, Pilati, & Peluso, 2011). Research by MacDuffie (1995)

shows that there are three ways HRM practices are likely to positively influence the

performance of any individual or organisation. (1) when employees possess good

knowledge and skills to perform the task required in the organisation, (2) when

employees are motivated to apply their knowledge and skills, and (3) when the

43

environment of the organisation allows them to contribute input and provide

suggestions.

The increasing trends of international business, market globalization and cross national

activities have seen growing interest in understanding what, how and why HRM

policies and practices differ between countries. Leat and El-Kot (2007) and Rosenzweig

and Nohria (1994) argued that HRM is the area of management most subject to national

differences. Therefore understanding national context is very important, particularly the

socio cultural context, economic and legal elements and the political environment. In

order to understand and to explain HRM practices and policies, the main focus has been

on aspects of national contexts (Leat & El-Kot, 2007). The implementation of HRM

practices within any country is both historically and socially embedded therefore HRM

practices are context specific and slow gradual change is expected. To ascertain that

HRM practices being used are reflective and consistent with cultural values, an

examination of the national culture of a country in relation to the HRM practices is

essential. Functions such as recruitment and selection, training and development, job

descriptions, rewards and performance appraisal systems have been found to be

significantly influenced by cultural differences (Leat & El-Kot, 2007).

National factors (i.e. economics, governance, financial, legal and trade unions) together

form the national business system and are the main sources of difference that underpin

HRM between nations (Hall & Soskice, 2001; Lane, 1995; Whitley, 1999). The last two

decades of the twentieth century saw the emergence of research identifying the

influence of national culture on HRM practices and policies (Bjorkman, 2004; Budhwar

& Sparrow, 2002; Laurent, 1986). To explain the national system of HRM, researchers

44

have focused on national, institutional and cultural environments. There is also a debate

as to whether cultural, institutional or indeed both factors have the greatest influence on

a national HRM system (Leat & El-Kot, 2007; Quintanilla & Ferner, 2003; Sparrow,

Brewster, & Harris, 2004).

HRM approaches in any country can be seen as cultural artifacts reflecting the basic

values and assumptions of the national culture where organisations originate (Laurent,

1986). Bjorkman (2004) reviews a number of studies that have examined the national

cultural influences on HRM practices and the cultural dimensions of Hofstede have

been used to illustrate how HRM practices may differ across national borders. The

majority of HRM practices and policies are culturally linked (Sparrow & Wu, 1998),

however, Budhwar (2000) concludes that HRM practices are context specific and so the

national HRM practices are determined by both ‘culture free’ and ‘culture bound’

factors. ‘Culture free’ factors include, technical and recruitment training as these follow

technical ingredients or specifications relevant to the job positions. ‘Culture bound’

factors include key elements of HRM functions such as policy for performance based

pay and group performance versus individual performance requirements (Kerr, Dunlop,

Harbison, & Myers, 1960). Therefore, HRM practices in any country are heavily

influenced by both the cultural and institutional arrangements. Budhwar and Sparrow

(2002) however point out that the deconstruction of various cultures is seen as difficult

and that institutional influences also impact on managerial behaviour. Therefore a

considerable focus has been given to understanding the influence of national culture on

work-related attitudes and organisations (Tayeb, 1998).

45

Authors such as Trompenaars and Hampden-Turner (2004); Stone and Stone-Romero

(2008); Tayeb (2005); Hofstede (1980a); Laurent (1986); Briscoe, Schuller, and Claus

(2009); Aycan (2005); Li and Karakowsky (2001) and Schneider (1992) argue that

HRM practices such as recruitment and selection, training and development,

compensation, performance appraisal, job description and employment security appear

to be vulnerable to cultural differences, and that this may have significant implications

for their design and suitability. For example, the concept of paternal leave is not as

common in developing countries as in developed nations.

According to Ashkanasy, Wilderom, and Peterson (2011), the growing debate on

culture has resulted in the emergence of more diverse and varied perspectives among

culture researchers (Sackmann, 2006). Authors such as Legge (1989), Adler and Jelinek

(1980), and Hofstede (1980a) argue that cultural context is of prime importance for

translating principles into practices. In the views of Denison, Nieminen, and Kotrba

(2014), culture was distinctively conceptualized and viewed as unique rather than

viewed as common or comparable. Successful HRM practices may not be easily

transplanted without taking culture into consideration. Kidger (1991) also questions

whether management practices are ‘culture bound’ or ‘culture free’, although

multinational enterprises (MNEs) are considered as key players in the transferring of

ideas. Schneider (1988) and (Lawrence, 1986) found that national culture may offset the

creation of the ‘international organisation man’, and international HRM has to look into

the ‘multi-dimensional puzzle’ available at the junctions of national and organisational

cultures.

46

Organisational culture is constrained by the national culture (Hofstede, 2001), which is

a reflection of the values, norms and beliefs of the local population. This argument is

supported by (Johns, 2006) who views national culture as a ‘contextual imperative’

which constrains the organisational culture. Different national cultural values can

influence leadership styles, organisational culture and how HRM practices and policies

are implemented within the organisation (Rhodes et al., 2008). So national cultures

differ mainly on their basic values, while organisational cultures differ more in their

practices and become a visible part of culture which can be changed within cultural

boundaries. The core of organisational culture is in the practices shared by its

employees (Hofstede, 1998).

Increased interest has been seen in the relationship between HRM and organisational

performance (Appelbaum & Kamal, 2000; Boxall & Macky, 2009) and attention has

focused on the importance of knowing the mechanisms through which HRM influences

organisational performance (Datta, Guthrie, & Wright, 2005; Delery, 1998; Paauwe &

Boselie, 2005). Over the last decade, HRM research has tended to focus on issues of

organisation and control through optimization of the organisational work, combination

of efficiency and flexibility with innovative work structure and the sophisticated

management control mix (Appelbaum & Kamal, 2000; Boxall & Macky, 2009).

Commitment, cooperation, empowerment and self-control are at the heart of “high

commitment or high involvement work systems” which provide “optimal” HRM

systems (Appelbaum & Kamal, 2000; Arthur, 1994; Boxall & Macky, 2009; Huselid,

1995). This particular approach to HRM creates a better situation for both employers

and employees that can result in the implementation of newer, more flexible and

adaptable work environments.

47

Guest and Peccei (2001) and Patterson et al. (1997), indicate that employee

commitment and satisfaction are associated with higher workplace performance and that

HRM has an effect on employees' attitudes and behaviour. As a whole, employee’s

satisfaction both inside and outside work may best be linked to HRM in the context of a

partnership or mutual gains system. A range of policies and practices associated with

work and life satisfaction for employees and higher performance for the organisation

can therefore be implemented more effectively (Guest, 2002).

Organisations are increasing their focus on improving customer service with a

realization that eliciting customer oriented behaviour from employees is critical. Thus

service oriented behaviours are forms of organisational citizenship behaviour (OCB)

(Morrison, 1996; Schneider, 1990). Many behaviours are difficult to specify and

ensuring these resultant behaviours through HRM techniques such as training, job

description and reward can be difficult. OCB is a behaviour which is beneficial for an

organisation despite the difficulties of formally specifying or rewarding OCB (Morrison,

1996). According to Sonnenberg, Koene, and Paauwe (2011) each HRM practice can be

important for elevated performance if the HRM system is focused on a specific

combination of practices. High commitment and high involvement work systems are

seen as “optimal” HRM systems for managing employees which better align the

interests of both the employees and the organisations (Arthur, 1994; Kochan &

Osterman, 1994). Organisations that focus and commit to HRM practices are thus

paying attention to, and investing in their human capital (Boselie, Dietz, & Boon, 2005).

The aggregate level of OCB behaviour demonstrated by the employees will have a

positive effect on the quality of service that the organisation delivers (Morrison, 1996).

48

Organ and Ryan (1995) noted that primarily research on OCB focuses on the motivating

impact of employee level variables for example attitudes, perceptions and personal

dispositions. These provide guidance to the organisations to encourage OCB to improve

services (Morrison, 1996).

2.3.1 Human Resource Management Practices and Cultural Context

Hofstede (1983), claimed that management is ‘culturally dependent’, and noted that

leaders of effective organisations become accustomed to foreign management ideas

within local cultures. Hofstede (2001, pp. 141-142) recognized that ‘there have been

examples of multinationals successfully reforming local cultural traits’, but ‘this is a

difficult task, and for best results multinational management practices should fit the

local culture’.

Hofstede (1983) assumes that there is face-to-face correspondence between the culture

and the nation, representing a reciprocal relationship. Four dimensions of culture, Power

distance, Individualism and collectivism, Masculinity and Femininity and Uncertainty

avoidance, identified by Hofstede link culture to human resource management and

influences how human resource practices are used and practiced.

The central role of national culture was highlighted by the Global Leadership and

Organisational Behaviour Effectiveness (GLOBE) cross-cultural study of Gupta and

House (2004) which found an emphasis on the relationship between national culture and

organisation culture that ‘mirrored’ each other. Gerhart (2009) and Javidan, House,

Dorfman, Gupta, Hanges, and de Luque (2004, p. 726) concluded that ‘organisations

mirror societies from which they originate’. HRM and culture both come from

49

employees who have been influenced by events outside the organisation in their social

settings (Khilji, 2003). Ideas and beliefs are part of the people’s everyday life and one

can neither isolate organisations from culture nor separate culture from the social

structure. Thus culture is the driving force behind organisations (Willmott, 2000) that

influences decision making and HRM practices. Gerhart (2009) argued that the

organisations are constrained or mirrored by the national culture but face environmental

pressures to be similar to other organisations and seek opportunities to be different from

other organisations. Hence, emphasis is given to adapting or setting policies that

respond to environmental pressures to conform to accepted business styles for

organisational success (Scott, 2013).

However, Kochan, Katz, and McKersie (1994), argued that even when organisations

face the same challenges of environmental pressures and competitiveness they can be

unique in the market with respect to the attributes of HRM practices and organisational

culture. Organisations with distinct human resource management practices and

organisational culture may experience an increased level of success.

According to Gerhart (2009) besides cultural characteristics countries also differ in

institutional environments, competitive environments, management practices, strategic

decisions and organisational background. All these aspects have a certain influence on

organisational culture, and it is generally assumed that national culture significantly

constrains organisational culture. Moreover research evidence suggests that countries do

differ. Therefore, national cultures differ and such differences should be taken into

consideration while implementing and designing management and HR practices for

organisational success (Gerhart, 2009).

50

As pointed out by Nyambegera, Sparrow, and Daniels (2000), the work of Austin

(1990), Jaeger and Kanungo (1990) Kanungo and Mendonca (1994), and Kanungo and

Saunders (1995) has focused on management issues in Asian developing countries and

identified that culturally, developing countries employees have completely different

values from Western employees. Hence, Western HRM paradigms are less relevant to

Asian countries because of their divergent context (Nyambegera et al., 2000).

Research shows that South Asian managers are often traditionalists and have a

preference for their current ways (Jaeger & Kanungo, 1990; Miah, 2000; Razzaque,

1991). These managers resist changes and develop culture-based, superior or

subordinate relationships with regard to the local customs. These managers believe

more in the value of machinery, equipment and plant of the company than in the

development of human resources (Miah & Bird, 2007). Studies by Habibullah (1974),

Razzaque (1991) and Sobhan and Ahmed (1979) observed that in South Asian

Companies an autocratic approach prevails and managers favor an authoritarian style of

HRM, perceiving this as equivalent to professional management. Subordinates rarely

participate in managerial decision-making and ‘closed door’ is a common practice in

South Asian companies (Khilji, 2003). Psychologically, the managers in South Asian

companies are least concerned with employee participation and the participation of

managers themselves in HRM practices is not noticeable (Miah & Bird, 2007).

51

2.3.2 Transferability of Human Resource Management Practices

To further complicate the challenges of HRM in the international arena transferring

HRM practices and policies from developed nations to developing nations requires an

understanding of culture-sensitive practices and societal culture characteristics. Thus it

is advisable for HR experts and managers to understand the cultural differences prior to

implementing HRM practices and policies with respect to the developing countries’

culture (Papalexandris & Panayotopoulou, 2004). The workforce brings culturally based

values to the workplace and requires a HRM system that encompasses the reflected

values of their culture. For example, American organisations have introduced

management by objectives (MBO) to translate individualism of their employees into

recognition of performance, and creating effective incentives for the employees (Khilji,

2003). The results of a survey conducted in India evidenced that the majority of people

working at managerial level believed that HR policies are influenced by the labour laws,

educational trainings and industrial regulations (Budhwar & Debrah, 2001).

The theoretical model of culture fit (MCF) proposed by Jaeger and Kanungo (1990) was

an attempt to relate culture to HRM practices. The reliability of the MCF was tested

with the participation of 2,003 employees and managers from ten countries namely:

Canada, US, Germany, Israel, Romania, China, Pakistan, India, Turkey and Russia

(Aycan et al., 2000; cited in Aycan, Al-Hamadi, Davis, & Budhwar, 2007). The

conclusion derived from the MCF was that, the organisation’s two essential elements,

task and employees, are influenced by the managerial beliefs and assumptions of the

internal culture of the organisation (Aycan et al., 2007). HRM practices were based on

managerial beliefs and were designed to alter or improve employee skills and behaviour.

Managers based their beliefs on the understanding that controlling or directing their

52

own actions was determined by the existing socio-cultural contexts; and would

subsequently influence the behaviour of others through setting an example.

In the field of HRM noteworthy advances, have been made in the past few decades.

Albeit, the focus of the research has only been on developed countries (Aycan et al.,

2007; Legge, 1995; Schuler & Jackson, 2005). This needs to be extended to developing

countries. Research in the developing countries needs to be tested for the

generalisability of theories and practices which have actually originated in the

developed countries context and there is a need to identify suitable strategies in relation

to the different contexts (Ali, 1992; Aycan et al., 2007; Napier & Vu, 1998; Robertson,

Al‐Khatib, & Al‐Habib, 2002).

Each HR practice faces the same issues of transferability, cultural significance and

impact, and relevance when introduced to a culturally different context. The remainder

of this literature review will focus on three HR practices: reward management system,

promotion practices, performance appraisal system, and two mediating components

national culture and organisational culture, with organisational citizenship (OCB)

behaviour as an outcome variable. The next section discusses reward management

systems, followed by promotion practices and performance appraisal systems.

2.4 Reward Management System

The term ‘reward’ is frequently used in the literature. On the one hand ‘reward’ is

considered an incentive to the employee in return for the contribution of their services.

On the other hand, it is an expense to the organisation. Reward management is simply

defined by Drucker and White (2000, p. 1) as “the management of remuneration

53

systems”. It is a method of implementing strategies and developing systems through

which organisations achieve their objectives while attracting, motivating and retaining

employees (DeGieter et al., 2008). Thus rewarding employees is an exchange process

between the employer and employee, where employees perform their task in return for

receiving rewards (Perkins & Vartiainen, 2010).

Husin et al. (2012), refer to rewards as all compensations and incentives provided to

employees by the organisation for their contribution: mental, physical, moral and

regulatory. Husin et al. (2012) used a questionnaire which was developed by integrating

questions from a number of previous studies and focused on issues associated with

reward management practice, supervisory recognition and performance

acknowledgement. They found that these factors equally enhance organisational

citizenship behaviours and suggested that managers should be more responsive to

employee needs on these HRM specific practices.

Behrend (1957) described this process as an “effort bargain” whereby employees accept

employer direction of their working hours in return for pay (Behrend, 1957). However,

effort bargain is not a static arrangement and ‘renegotiation’ of the terms of exchange at

the time of hiring of an employee is often necessary (Marsden, 2004). The contract of

employment is open-ended in duration and contents and sometimes this contract needs

revision and at this point renegotiation must occur. Both employee and employer have

invested in this relationship and are vulnerable to pressure tactics from each other,

because employers do not want to lose employees and employees do not want to lose

their job. Considering the importance of reward management practices, factorial

54

structure should be regarded as an important aspect in determining reward structure and

its prospects, in identifying specific, quantifiable output of work.

Rewards are instrumental for the satisfaction of employee needs and preferences

(Maslow, 1954). Hofstede (1980a), and Pennings (1993) argue that employee needs and

preferences vary across cultures, and that this affects the relative importance individuals

attach to rewards. Therefore, employee perceptions of different rewards may differ

across cultures, which ultimately affect the motivational potential and effectiveness of

the reward system of any organisation (Chiang, 2005). For example in cross-border

business, multi-national companies must recognize the cultural influence of reward

systems because studies show that employee perceptions of reward systems are

culturally bound (Hofstede, 1980a; Pennings, 1993).

As reward is a central element in the relationship between the employee and employer,

it is important that the employee’s perceptions of different rewards are comprehended

(Chiang, 2005), and that organisations offer well defined tangible value (e.g. pay and

bonus). The employee must know which tasks to perform and which rewards they will

receive in return; resulting in more effective employee performance and organisational

goal achievement. Expectancy theory (Porter & Lawler, 1968) provides support for this

claim, demonstrating a strong and visible link between performance and reward. When

employees believe their performance will be rewarded they strive to achieve a particular

level of performance. Chiang (2005) found evidence of expectancy in the employee

preference for individual performance reward because there is a clear and direct

perception of the link between personal performance and reward outcome. Similarly,

according to Tones, Pillay, and Fraser (2010) personal characteristics such as age and

55

gender affect employee perceptions of rewards. Hence, in retaining efficient workers

consideration of employee perceptions is essential for developing a system of rewards

that provides suitable incentives to enhance employee performance (Irshad & Toor,

2008).

Bratton and Gold (2003, p. 278) contend that rewards are all “the monetary, non-

monetary and psychological payments to employees in exchange for the work they

perform”. Each reward type satisfies different needs. Elements of reward management

as identified by Perkins and Vartiainen (2010) such as governance of pay and other

benefits under the employment contract can be controversial and have been criticized

especially at the time of the global financial crisis. Pressure on management to get it

right has widened the concept of the “total rewards” model (Giancola, 2009). A total

reward includes everything employees get as a result of their employment, i.e. monetary

payments and other material benefits with monetary value such as health insurance,

residence allowance and paid holidays (Davis, 2007). Another reward element

encompasses “psychological rewards” such as recognition of professional interpersonal

relationships (Perkins & Vartiainen, 2010).

The rewards should have a lasting impression to substantiate the employee’s perception

that they are valued. In this regard Frye (2004) argues that human capital is the most

critical asset for any organisation. To attract human capital an organisation needs to link

its incentive system with organisational performance. The loss of valuable human

capital due to poor incentives may be very costly. Frye found a positive relationship

between equity based compensation and firm performance and concluded that for

56

human capital intensive organisations compensation plays a vital role in attracting and

retaining highly skilled employees.

Ichniowski, Shaw, and Prennushi (1997), argue that employees performance can be

improved if they are informed about significant benefits and incentive pay plans which

are linked with practices such as employee participation in problem-solving, flexible

tasks or job design, training to improve variety, and employment safety and security.

Reward management systems have a statistically significant relationship with employee

outcomes and corporate financial performance; for example, firms with effective reward

systems have lower turnover, greater productivity, and better financial performance

(Huselid, 1995).

Besides economic exchange, employees establish a social exchange relationship with

their organisation. This includes long-term orientation guided by mutual trust, feelings

of personal obligations and gratitude. Employees perform their job with a trust that their

employers will compensate their efforts with appropriate rewards. In psychological

rewards most rewards have a symbolic value satisfying an intrinsic need for recognition

or achievement (DeGieter, DeCooman, Pepermans, & Jegers, 2010).

While accepting the controversies around the substance and process of employee reward

following economic shocks from the global financial crises, employers’ responses may

vary subject to the nature of the employment relationships and the role rewards play in

regulating that relationship and its outcomes. For example employers bringing in

foreign direct investment with their own ways of managing rewards (Perkins &

57

Vartiainen, 2010). Therefore, diverging assumptions about the role and nature of the

reward are based on changing circumstances.

Highly skilled employees may become poor performers if not motivated; and for better

performance motivating employees requires rewards (Delaney & Hussield, 1996). The

reward system increases performance in the interest of the employee and organisation

equally. Better reward systems improve employee performance which results in

increased productivity of the organisation (Shah et al., 2011). A reward can be of

extrinsic or intrinsic value. An extrinsic reward includes salary, bonuses, benefits of

promotion and physical working conditions. Intrinsic reward is associated with a

person’s self esteem and includes factors like autonomy, challenges and variety in the

job context (Shah et al., 2011). Rewards are instrumental in stimulating employee

behaviours to encourage excellent service and a strategically designed reward system

helps to generate commitment and employee behaviour for effective contributions

(Elmadağ, Ellinger, & Franke, 2008).

Employee reward preferences may differ between cultures or between individuals

within a culture. To understand employee preferences and provide a more

comprehensive and broader set of rewards entails consideration of three main aspects of

rewards i.e. type, system, and criterion. (1) Reward type denotes the nature of the

reward, for example financial or non-financial, extrinsic or intrinsic. (2) Reward system

refers to the methods for determining employee reward. For example reward may be

based on the employees’ performance on the job, or on non-performance factors such

as, seniority, length of service, and skills. (3) Reward criterion, focuses on the basis

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upon which rewards are distributed, such as individual or group based rewards (Chiang,

2005).

Considering the importance of reward management systems in attracting, motivating

and retaining employees, the factorial structure should be regarded as an important

aspect in identifying specific, quantifiable output of work. Hence, based on prior

research and literature the following hypothesis was proposed to test the reward

management system construct:

Ha: The factor structure of reward management systems are interrelated, multi-

dimensional and optimal predictors.

59

2.5 Promotion Practices

Organisations use promotions to give incentives to valuable employees in return for

their hard work, and at the same time to fill higher level positions. Promotion provides

an incentive for employees to learn new skills and to engage in additional training that

results in permanent earning differences (Bimbaun, 1976; Deborah et al., 1990).

Armstrong (2003) suggests two important considerations for promotion procedures in

organisations; (1) to enable management to obtain the best talent available in the

organisation to fill senior positions; and (2) to provide an opportunity for employees to

advance their careers in the organisation in accordance with the opportunities available

and their abilities.

Promotion is regarded as a practice for recognizing and rewarding employees’ effort

and contribution to the organisation. It is symbolized by a change of job and title,

associated with a pay increase, power, and responsibility (Go & Kleiner, 2001).

Promotion is considered a key aspect of job quality (Valverde, Ryan, & Gorjup, 2007).

Employees feel satisfied with these incentives and are encouraged to perform better in

the new role, whilst improving their knowledge and skills to increase productivity.

Employees with better jobs may decline other opportunities, therefore, promotions

reduce turnover and increase employees’ loyalty to the organisation (Go & Kleiner,

2001). The management of the organisation expects promotions to bring an opportunity

for improvement in organisational output. Employees are expected to produce while

learning about the new job. As a result, promotion should improve organisational

efficiencies (Go & Kleiner, 2001).

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According to Melero (2010), career moves have two dominant aspects: (1) efficient

allocation of skills for the tasks, i.e. job related training that increases worker’s skills;

and (2) promotion as an incentive rewarding performance. Promotions could be the

result of the acquisition of skills which are productive at higher responsibility jobs. This

can be seen in the hierarchy of different jobs of a prospective worker (Melero, 2010).

Organisations that use promotion as an incentive device frequently recruit employees at

the lowest level and reserve high level positions for insider promotion. For such

organisations, promotion prospects for the employees work as a principal source of

incentive without feeling any threat of outside competition. Realistic prospects for

promotion will encourage employees to work harder and to undertake overtime work

(Melero, 2010). The internationally successful company Hewlett-Packard (HP) has a

policy that promotes and develops staff from within (Truss, 2001). Tessema and Soeters

(2006) argue that there is a positive correlation between promotion practices and

perceived employee performance in that performance was shown to improve when staff

felt that this would most likely lead to promotion. Park et al. (2003), support this view

arguing that practices such as merit promotion can lead to higher performance in an

organisation.

According to Hahn (2009) promotions are mainly based on two procedures: initial

evaluation of the employee through interviews, tests and examination of Curricula-Vitae;

and job performance after entering an organisation. The promotion procedure may vary

across organisations and countries. In many Asian countries initial evaluation is given

preference over the employee performance after entering the organisation. For example,

the candidate who graduated from a renowned university in Asia or from the USA, UK

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or Australia is more likely to be promoted, whatever their performance after entering the

organisation. In this situation their competition for a promotion may not exist, although

competition makes employees work harder (Hahn, 2009).

Distorted promotion competition among the employees may affect their current work

activities. Therefore, reducing promotion competition would affect the chance to

promote the right employee. Organisations that are concerned about the success of

current activities may avoid competition between employees for promotion and focus

on the initial evaluation because promotion competition causes disharmony among its

employees that ultimately disturb the organisation’s interests (Hahn, 2009). Lazear and

Rosen (1981) concur that the risk of disharmony created through promotion competition

may be damaging to an organisation’s interests.

However, Hahn (2009) argued that to handle the trade-off between the successful

current work activities and correct promotion decisions the organisation may use both

initial evaluation as well as job performance to make better promotion decisions. For

example a mechanism comprising an examination of initial evaluation may provide

information about the background of the employee, past achievements and future

interests that would lead to the employee’s job placement or position for better job

performance after entering the organisation.

Herpen et al. (2006) find significant positive effect of promotions on intrinsic as well as

on extrinsic motivation and support the effectiveness of promotions as an incentive

device. Intrinsic motivation becomes high when an employee expects to be promoted in

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the near future, and a long delay in achieving that promotion would demotivate

employees and would result in poor performance.

A monetary reward, appreciation of work by the boss and status under an implicit

contract with the employer in return for certain performance by the employees is an

induced behaviour for extrinsic motivation. Some employees are performance oriented

and are more motivated than others having an extrinsic work motivation to achieve

positive evaluations (Heintz & Steele-Johnson, 2004; Kacmar, Carlson, & Bratton, 2004)

and believe in themselves to create an image emphasizing one’s own achievements and

abilities (Schütz & Tice, 1997). The intrinsic motivation is the individual’s own desire

to work for self-satisfaction which becomes stronger if the employee is fairly considered

for extrinsic motivation (Benabou & Tirole, 2003). They further argue that promotions

can increase self-esteem and intrinsic motivation of employees. Promotion can create

trust and empowerment that has a positive association with intrinsic motivation (Deci &

Rayan, 1985). Thus promotion plays a central role in creating incentives for employees

and the prospect of promotion increases the level of extrinsic as well as intrinsic

motivation (Herpen et al., 2006).

Although organisations are spending a large amount attempting to comply with fair

employment laws, many managers face a dilemma in promotion decisions.

Organisations continue to have problems with employees who perceive unfair treatment

in promotion practices (Go & Kleiner, 2001; Lemons & Jones, 2001). Promotion

decisions involve a search for the competence to execute the new job role according to

the manager’s expectations, which is often difficult. According to Go and Kleiner (2001)

the process of searching for competence involves managers’ time and seems annoying

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and burdensome to the managers. Therefore, sometimes managers make hasty and

uninformed decisions that result in problems in the future. For example, bad promotions

decisions can increase inefficiency in the organisation or the decision to promote the

wrong person requires more managerial attention which detracts from their managing

time (Go & Kleiner, 2001).

An unfair promotion decision creates aggression and fear among employees. As a result,

the organisation’s activities get interrupted and the achievement of goals is jeopardized

(Go & Kleiner, 2001). The issue of discrimination based on race, colour, religion, sex,

national origin and age is frequently mentioned by the popular press; often using the

phrase “the glass ceiling”. The glass ceiling refers to an invisible barrier for a denial of

equal opportunity such as, gender discrimination and prevention of minorities from

advancing to higher levels in organisations (Go & Kleiner, 2001; Lemons & Jones,

2001; Morrison & Von Glinow, 1990). However, although legislation such as the 1991

Amendment to the Civil Rights Act (USA) and the constitution of Pakistan 1956 Article:

27 safeguards against discrimination in services and specifically prohibits

discrimination against women and minorities with strict penalties for organisations

failing to comply, many problems continue to exist in this area (Lemons & Jones, 2001;

"Article: 27 safeguards against discrimination in services", Pakistan).

According to Go and Kleiner (2001) promotion decisions are generally made on a

seniority or ability basis. Seniority based promotion is easy to analyze because it refers

to the length of service in a particular job. Ability based promotion includes

consideration of knowledge, attitudes and performance that are complicated to measure

due to the different perception of ability by different organisations. For example, an

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employee’s performance level should be evaluated based on his/her attendance,

punctuality and production. The organisation should have set goals and a prudent

formulated promotion system with clear guidelines informing employees (Go & Kleiner,

2001). Therefore, measuring these factors varies depending on circumstances, and type

of organisation. In the organisations the relationship between seniority and ability is

likely to be less consistent and promotion patterns are more flexible (Go & Kleiner,

2001).

A few researchers have specifically focused on procedural justice in promotion

decisions (Gilliland, 1993, 1994; Saal & Moore, 1993). Heneman, Judge, and

Kammeyer-Mueller (2003) considered promotion a form of employee selection; internal

promotion systems differ from external employee selection. As promotion involves

existing employees, candidates have more information regarding the procedures used in

the organisation to make promotion decisions than external job applicants. Therefore,

employees who are rejected and who perceive the procedures used during the promotion

process to be unfair, might demonstrate negative attitudes or behaviours.

According to Lemons and Jones (2001) promotion decisions might include interviews,

performance reviews, psychological testing, or assessment centres. Hewlett-Packard

allows their employees to choose their own supervisors to increase their interest in

seeing their managers succeed. This can be especially important when the employee

chosen for the promotion obtains legitimate power over former co-workers through the

new position. The former co-workers are more cooperative when they participate in the

promotion decision (Deutschman, 1994). Employees feel satisfaction with

organisational outcomes, when they experience procedural justice in promotion

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decisions and perceived fairness in promotion decisions can be an important

determinant of employee commitment (Deutschman, 1994; Lemons & Jones, 2001).

Promotion policies and their use in organisations can also be examined using the theory

of internal labour markets (Doeringer & Piore, 1971; Wholey, 1985), which entails an

itinerary of jobs and professional career opportunities, less entry-routes into the

organisation, and the provision of training in company-specific knowledge (Hurley,

Wally, Segrest, Scandura, & Sonnenfeld, 2003; Matias-Reche & Fuentes-Fuentes,

2006).

Sourcing applicants from an internal labour market is considered to have a number of

advantages for both organisations and employees (Anuedo-Dorantes, 2000; Burgess &

Connell, 2006; McConnell, Brue, & Rabasco, 1997; Pergamit & Veum, 1998). From the

employee perspective, internal labour markets promote greater job quality, ensuring job

security, and opportunities for promotion (McConnell et al., 1997). However, internal

labour markets also limit the competition for jobs from the external or secondary labour

markets (Anuedo-Dorantes, 2000).

Many studies revealed that these characteristics of internal labour markets contribute to

increasing job satisfaction among employees (Hunter, 2000; Leontaridi & Sloane, 2001;

Ritter & Anker, 2002; Valverde et al., 2007). Most empirical studies of internal labour

markets have focused on the manufacturing sector, both in terms of structure (Garavan

& Coolahan, 1996) and the use of promotion (Baron, Davis-Blake, & Bielby, 1986;

Bayo-Moriones & Ortin-Angel, 2005; Carmeli, Shalom, & Weisberg, 2007; George &

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Shorey, 1985; Gorjup et al., 2008; Pergamit & Veum, 1998). Therefore, there is a need

to examine the use of promotion in the service sector.

Many authors demonstrate that in the knowledge and information society, organisations

are encouraged to develop employees’ skills and knowledge (Hansson, 2007; Sieben &

De Grip, 2004) and that promotions are used in organisations which require specific

knowledge to undertake the job (Becker, 1964), through the provision of training.

(Gorjup et al., 2008) found that the greater the extent to which organisations depend on

specific skills, that are best acquired through training on-the-job, the greater the

likelihood of the use of promotion. Promotion is encouraged in situations where people

are working in a close work environment, gaining real experiences and organisations are

investing in employees to develop specific skills and knowledge (Baron et al., 1986;

Bayo-Moriones & Ortin-Angel, 2005). Moreover, the impact of investment in training

can be increased when it is combined with other human resource practices such as,

training and promotion (Ichniowski et al., 1997; Sieben & De Grip, 2004). Additionally,

Bayo-Moriones and Ortin-Angel (2005) found that when internal promotions are made

to fill a vacancy, the organisations save on the training costs of providing a new

employee from outside with company-specific skills. Therefore, an organisation

benefits as the trained employee is promoted and utilises his/her acquired knowledge,

skills and competence.

Given the importance to an organisation of promoting the right person and the fact that

an adverse or wrong decision can result in litigation (Landy & Conte, 2004) it is

surprising how little attention has been paid to promotion practices in academic

literature. In order to be successful, organisations need to have a talented work force.

67

Generating a talented work force begins with the selection of an appropriate individual,

providing helpful training and mentoring processes. Well designed promotion practices

can contribute to the development of talented individuals (Breaugh, 2011). Promotion is

considered as a process of rewarding and recognizing employees contribution to the

organisation. Employees remain satisfied with promotion prospects and perform well,

whilst enhancing their skills and knowledge (Go & Kleiner, 2001; Gorjup et al., 2008).

There have been several studies that have examined the link between training and

promotion (Melero, 2010), effects of wage and promotion incentives (Takahashi, 2006),

assessing the contents of the psychological contracts (Krivokapic-Skoko et al., 2009)

and promotion in call centers (Gorjup et al., 2008).

Considering the importance of promotion practices, the factorial structure should be

regarded as an important aspect in determining promotion practices and its prospects in

identifying specific, quantifiable output of work. Therefore, in the light of reported

empirical evidences from prior research, the following hypothesis posited to investigate the

promotion practices construct:

Hb: The factor structure of promotion practices are interrelated, multi-dimensional

and optimal predictors.

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2.6 Performance Appraisal System

Performance appraisal is one of the practices used in organisations to evaluate and rate

an employee’s performance of a particular job it is a process that allows for assessing

progress towards that achievement of the desired goals or other performance standards

(Kramar et al., 2011). Murphy and Cleveland (1995) state that performance appraisal is

typically conducted as a formal, discrete event once or twice in a year, for two reasons,

(1) to assist with administrative decisions like promotions and pay raises, and (2) to

assist in the employee’s development through identifying training opportunities and

areas for improvement. Appraisal can be instrumental for the organisation in order to

achieve its objectives if it is performed correctly and logically (Alireza, 2000).

Success of the organisation depends upon the motivation of their employees and

performance appraisal systems are the most popular tool for reforming activities to

motivate staff for improved services (Saibou, 2011). Recognizing highly skilled

employees and rewarding them appropriately for their hard work in order to motivate,

retain and improve their performance are among the important aspects of performance

appraisal. Brown and Benson (2003) and Brown and Hewood (2005) also believe that

with the help of performance appraisals an employee’s commitment and productivity

can be improved, and with appropriate explanation and supervision of performance,

lead to higher job satisfaction and professional commitment.

Kavussi (1999) argues that appraisal systems help the organisation in improving the

quality and quantity of the employee’s performance. Performance appraisal is

considered a part of the control process in administration and an essential factor in

HRM. Formally, performance appraisals are used for many purposes such as

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promotions, demotions, retentions, transfers, evaluating training need, psychological

tests and developing executives (Ahmed, Hussain, Ahmed, & Akbar, 2010).

The appraisal procedure should encourage the appraiser to investigate the personality

traits of an employee such as mental alertness, integrity, initiative, confidence,

adaptability and job interest in an attempt to identify the difference in causes and effects

of employee behaviour. A well designed system of performance appraisal can help to

motivate staff. For example, identifying proficient staff and rewarding them is one such

means of motivation. Generally, an organisation needs employees who are working

towards achieving goals for its success. Employees also want to remain with an

organisation if they are motivated. Such commitment comes from motivation which

directly effects performance of both the employee and employer (Mundhra & Jacob

2011).

Performance appraisals may have two primary objectives. To measure employee

performance, and to measure how HR performance contributes to organisational goals.

According to Brown and Hewood (2005) performance appraisal represents a formalized

process which is used for worker monitoring and evaluating job performance and is

intended to be a management tool to improve the performance and productivity of

workers.

Deci, James, and Ryan (1989) maintain that managerial autonomy, support,

acknowledging subordinate’s perspective, providing information in a friendly

environment and encouraging initiation, results in employees being more satisfied with

their jobs and achieving greater goal attainment. They emphasize that performance

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appraisals need to be viewed as ways to motivate behaviour, and as such, they advocate

consideration of performance evaluation consequences rather than just measurement

issues. Deci and Ryan (2000) propose two types of motivation (1) autonomous that

includes action with a sense of volition and choice of experiences. Intrinsic motivations

such as self-esteem and self actualization are examples of autonomous motivation. (2)

controlled motivation includes actions taken under pressure or externally mediated, such

as actions undertaken as part of the job responsibilities often determined by others.

Lawler (1969) advocated that intrinsic and extrinsic motivators need to be taken into

consideration in a performance appraisal system. An effort-reward probability can be

established for many people because rewards are deemed to have high positive value.

Intrinsic includes motivation from within and is internally-mediated, for example these

might include such factors as pleasure, choice and interests. Extrinsic motivation is

derived from monetary and nonmonetary rewards, for example, salary, bonus and health

care facilities. Thus both types of motivators are a key component in supporting

effective performance appraisals.

The annual appraisal process is often very lengthy and expensive in achieving

objectives such as employee development, employee motivation and promotion,

allocating tasks and assignments, maintaining discipline, organizing pay increases,

providing performance feedback and determining educational and training needs. To

achieve organisational objectives it is very important that each employee should have an

awareness of the strengths and or weaknesses of their performance to resolve the

problems and turn deficiencies into greater efficiency and effectiveness.

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Appraisal practices include formal review, feedback sessions, and procedures for

establishing work objectives, conducting self-appraisals, and setting performance goals.

Performance appraisal outcomes can influence employees’ reactions toward their work,

their supervisors, and their organisation as a whole. The appraisal process can create

frustration and extreme dissatisfaction among employees when they perceive a biased,

political or irrelevant appraisal system (Skarlicki & Folger, 1997).

Appraisal systems can play a very important role in recognizing an employee’s talent

and capabilities but while undertaking the appraisal process several problems may be

experienced including inadequate support by managers, impracticality, biased attitude

of appraiser or failure to conduct fair appraisal, as well as the manager’s lack of skills in

using the appraisal process (Hamidi et al., 2010). These problems in the appraisal

process ultimately affect the job assignment, training and promotion, transfer and

dismissal and rewards such as salaries (Zavvaradeh, 1998). Such approaches to

performance appraisal could merely be window dressing and a formality that would not

provide the desired results. Going through such a process will result in a waste of time

and resources and decisions made may result in unintended consequences (Mirsepassi,

1999).

As Wilson (2005) highlighted, performance appraisal encompasses the motivation,

skills and knowledge activities of employees if conducted well. Comprehensive

understanding of the effects of performance appraisal on individuals’ perceptions

depends on all aspects of the appraisal process. Performance appraisal is more than the

observation, judgment, evaluation, interviews, and formal documentation as emphasized

by the traditional rational model. Performance appraisal systems are also more than the

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personalities, self-interests, power and negotiations among their participants as

suggested by the political model (Thurston & McNall, 2010). A performance appraisal

includes both subjective as well as objective assessment of employee performance, to

calibrate, refine and reward performances. Thus performance appraisals should be

focused on ‘feedback, development and assessment’ (Khanna & Sharma, 2014). Hence

improvements cannot be limited to the formats, criteria, training, goal setting, feedback,

and other methods to improve the traditional model.

Performance appraisal systems must necessarily include all aspects of the performance

appraisal in an integrated framework combining social interactions among the people

involved with the structural forces in the environment to shape the perceptions about the

processes and outcomes of performance appraisals (Thurston & McNall, 2010). These

combinations and understanding the flaws in the system as a whole enable researchers

to explain the performance appraisal phenomenon and assist organisations to improve

their performance appraisal practices.

Associated with employee acceptance of performance appraisal is the employee

perception of fairness. When employees perceive performance appraisal systems to be

unfair, employers that are unable to measure specific appraisal practices and faults tend

to assume that the entire system is bad. This situation can be rectified when employers

are provided with the necessary information to make sensible decisions concerning their

existing performance appraisal systems (Thurston & McNall, 2010). Employee

dissatisfaction with the performance appraisal approach can be minimized if employees

see procedural justice and perceived fairness in the appraisal process (Thurston &

McNall, 2010). In order to determine the fairness of organisational processes Leventhal

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(1980) identified seven procedural categories, unfair practices in any one of the

categories can lead to perceptions of injustice. These include procedures for selecting

agents, setting ground rules, collecting information, making decisions, appealing

decisions, safeguarding employee rights, and changing procedures. Employers with a

better understanding of employees’ perceptions about the performance appraisal system

and process can modify performance appraisal practices so that their employees believe

the systems and processes are informative and fair (Thurston & McNall, 2010).

Public sector employees have been found to perceive a lower level of organisational

justice than private sector employees (Heponiemi, Kuusio, Sinervo, & Elovainio, 2011;

Kurland & Egan, 1999), due to different decision-making procedures, work processes,

and competing goals (Rainey, 2009). Research suggests public sector employees are

motivated differently from private sector employees (Karl & Sutton, 1998; Khojasteh,

1993). Fair procedural or interactional information helps employees reduce uncertainty,

and may lead to employees reacting more positively to fair treatment in situations of

uncertainty. While working together employees adopt shared perceptions of

organisational practices, procedures, and equity (Masterson, Lewis, Goldman, & Taylor,

2000), which affect individual perception of justice.

Mangwendeza (2001) argues that well managed performance appraisal is the key to

improving staff morale, enabling forward planning and effective corporate performance

management. Appraisal is the method of measuring the quality of work because the

quality of work depends on the competency of the employee. Therefore, appraisal is an

important and integral part of professional development in the workplace

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(Mangwendeza, 2001), and it can be used as a means to improve current performances

and to motivate employees (Rocchiccioli & Tilbury, 1998; Swansburg, 2002).

The performance appraisal system should be considered when looking at job

descriptions, as it establishes the criteria to measure job performances, relevance of the

job and indicates whether the system itself is appropriate to the needs and culture of the

organisation (Anderson & Pulich, 1998; Mangwendeza, 2001). Mangwendeza (2001)

argued that in terms of performance standard, employees should have clear guidelines

about expectations, and that descriptors be developed to formulate clear competencies

for job performance that are understood by both the employer and employee.

Competence frameworks are a means for aiding improved performance appraisal,

promotion and career planning (Redman, Snape, Thompson, & Yan, 2000). Mohrman

and Lawler (1983) argue that the motivations of HR managers in conducting

performance appraisals need to be considered in reviewing the performance evaluation

process, as it can be designed to measure overall contributions to the organisation or to

place strict boundaries on individual performance and behaviour.

Every system has a ‘shelf life’ therefore changes are required for renewing energy and

maintaining interest and relevance to the system. Ideally the performance appraisal

system must have some key characteristics (Mangwendeza, 2001). These characteristics

include involvement of employees in the development and revision of the system,

collaboration with the human resource department to produce appraisal procedures,

applications towards the development of recruitment policies, as well as rewards

relevant to the appraisal outcomes (Mangwendeza, 2001).

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Where researchers such as Femi (2013), Mundhra and Jacob (2011) and Thurston and

McNall (2010) have examined performance appraisal systems, from many perspectives

(the relationship between performance appraisal and worker’s performance; perceptions

of procedural justice; and intrinsic motivators of employees of all age groups).

Considering the importance of the performance appraisal systems, the factorial structure

should be regarded as an important aspect in determining performance appraisal

systems in a cross cultural setting in identifying specific, quantifiable output of work.

Based on, the research and literature presented here, the following hypothesis was

tested:

Hc: The factor structure of performance appraisal systems are interrelated,

multi-dimensional and optimal predictors.

76

The following section presents an examination of the literature relating to the two

mediating constructs of the study i.e. national culture and organisational culture.

2.7 National Culture

National culture has increasingly become a key construct. It refers to the set of shared

norms and beliefs amongst individuals within nationalized boundaries that are local to a

specific area (Muduli, 2011). Authors like Beck and Moore (1985) define national

culture as the set of assumptions, beliefs and values learnt in childhood which

differentiates one group of individuals from another group of people. Everybody’s life

is implanted with national culture at an early stage which is relatively hard to change

(Newman & Nollen, 1996). Similarly, Hofstede’s concept of national culture also

argues that culture is the ‘software of the mind’ that is embedded at an early age of

learning of any individual and is highly resistant to alteration. Another popular

definition of culture offered by Hofstede (1991) is that culture is the unanimous

planning of the human mind that distinguishes one from the other (cited in Senior &

Fleming, 2006, p. 124). This seems to suggest that culture is the nucleus around which

values revolve. Hence, domestic managers of companies are deemed to be responsible

for being familiar with differences in national culture and their influence on the

effectiveness of the HR practices and policies (Muduli, 2011).

Hofstede’s model includes four dimensions of national culture: power distance,

individualism-collectivism, uncertainty avoidance, and masculinity-femininity.

Hofstede’s research showed that culture involves beliefs and behaviours at various

levels evident in a wide range of organisational features such as aspects of work

organisation, training arrangements and government policies (Hofstede, Neuijen, Ohayv,

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& Sanders, 1990). Moreover Hunt (1992), OReilly and Chatman (1996) and Wilson

(2001), found that organisational culture involves shared beliefs, values, attitudes,

behaviours, assumptions and practices that guide and shape organisational members in

distinguishing and understanding activities. National culture refers to common customs

and convictions among individuals within national boundaries that are indigenous to

that area (Muduli, 2011).

The literature shows that different behaviours in different cultures are consistent with

Hofstede’s cultural dimensions and have significant impact on cross cultural studies

(Rhodes et al., 2008). There is ongoing discussion on the strengths and weaknesses of

Hofstede’s cultural dimensions ‘high vs low power distance; collectivism vs

individualism; masculinity vs femininity; long vs short term; certainty vs uncertainty

avoidance’, and a further nine cultural dimensions identified by Gupta and Houses’

GLOBE study (Global Leadership and Organisational Behaviour Effectiveness):

assertiveness, future orientation, gender egalitarianism, humane orientation, institutional

collectivism, in-group collectivism, performance orientation, power distance and

uncertainty avoidance, provide a broader cultural perspective in relation to management

practices (Tung & Thomas, 2003). To manage cultural diversity in cross-cultural

associations needs appropriate organisational and interpersonal practices and skills

(Delaney & Hussield, 1996). Therefore it is assumed that national cultures have

significant influence on employee’s performance both directly, through cultural norms,

beliefs, attitudes and values, and indirectly through its impact on employer HRM

practices. Rhodes et al. (2008), advocate the term ‘glocal’ which is the combination of

two concepts: ‘think globally but act locally’. These authors believe that western

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management practices need amendments if used in different cultures or in a non-western

perspective.

Research into international HRM has revealed that cultural differences have a great

influence on an individual’s perceptions and preferences (Laurent, 1986) which impact

on organisational and individual behaviour; for example, to enhance motivation within

developing countries, monetary benefits are the preferred acknowledgment or

appreciation of work rather than extra holidays or other non-financial rewards (Hofstede,

1980a; Rollinson & Broadfield, 2002).

Hofstede (1983, p. 89) further argued that “the convergence of management will never

come” because of the divergent perspectives of culture. While recognizing the

importance of culture in shaping individuals and institutional behaviour economic

theory proposes that, “cultural socialization” is seen as significant in its influence on

governance structures and in the coordination of employees action within institutions

for example working terms and conditions (Wolff & Pooria, as cited in Festing, 2006, p.

456).

Studies on cultural differences with regard to HRM practices have two primary focuses:

(1) raising awareness of cultural diversity due to the internationalization of the world

economy; and the challenges of designing and implementing integrated HRM practices

that acknowledge these differences (Milikic, 2009; Ricks, Toyne, & Martinez, 1990),

and (2) studying the cultural differences with regard to HRM practices and policies in a

comparative context.

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It has been noted in the research by Hofstede, that all national cultures are different,

influencing managerial values and beliefs. Due to varied national cultures, management

practices need to be diverse. Hofstede (1980a), Jackson (2002), Laurent (1983), and

Trompenaars and Hampden-Turner (1997) further assert in their research that each

society is different and that these differences can be noted in the organisational practices

and distinctive management styles exhibited. Organisations are influenced by their

particular cultural environment, with most HRM practices being based on cultural

beliefs that reflect the basic assumptions and values of the national culture and the

expectations and needs of the organisation and its employees (Myloni, Harzing, &

Mirza, 2004).

In addition, Fay (1996) and Lukes (1973) note that besides cultural values as

determinants of individual behaviour, people’s behaviour can also be partly understood

in terms of social structures that guide or constrain individuals within institutions in the

social system. For example in unionized companies, though management may favor the

parent company’s HRM practices and consider them beneficial they are often unable to

implement them, because of potential conflict in the host company (Beechler & Yang,

1994). This subsequently affects management practices because it is possible that a

certain practice may convey an entirely different meaning in another culture (Khilji,

2002). Social institutions also influence organisational practice in a systematic way,

which reflects national patterns through structural positions and processes (Sorge, 1995;

Whitley, 1992). For example low preferences for empowered HRM culture are found in

developing countries (Chandrakumara & Sparrow, 2004) and in developing countries’

socialization makes people passive and reactive to task requirements (Jaeger &

Kanungo, 1990). As noted by Sparrow, Schuler, and Jackson (1994), evidence of

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convergence of HRM strategies across nations is available but with cultural differences.

This means cultural context is very important for convergence of HRM practices and

policies. This is supported by Newman and Nollen (1996) who emphasized the

importance of congruence between national culture and management practices and

suggested that practices should be adapted to the local context to be effective.

Similarly, Huault (1996) found convergence in the reported globalizing of French

industry and Japanese attempts to adopt US-type HRM practices, which suggests that

both nations are becoming ‘less nationalistic’ in their own HRM policies, and

incorporating more individual empowerment, flexibility, and concern for retaining

specialist skills and improving commitment from employees in the workplace. On the

other hand, Japan tends to have a strong vertical hierarchy and a culture of high respect

for authority; equality and empowerment is little emphasized in Japanese culture

(Faulkner, Pitkethly, & Child, 2002). However, hindrances in convergence of HRM

show that national culture may dominate approaches to the way in which companies run.

As such, due to the cultural differences and preferences a country’s emphasis differs i.e.

USA-standardization of output, French-standardization of processes, German-

standardization of skills and Japanese-standardization of values. These cultural

differences and preferences influence their attitudes to HRM practices and policies

(Faulkner et al., 2002; McGaughey & De Cieri, 1999). This is why USA, UK and

German companies are inclined to openness and equality and companies in these

countries lean towards flexible working conditions and decentralization (Faulkner et al.,

2002).

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Faulkner et al. (2002) also examine an alternative view which supports the convergence

in HRM practices across nations. They argue that with increasing globalization,

spreading industrialization and technological change across national cultures

management practices will converge into a single best practice internationally. Earlier

Woodward (1958) noted that technology plays a stronger role in establishing

organisation structures than culture. Similarly, Kerr, Dunlop, Harbison, and Myers

(1962), mentioned that industrialization and technological advancements tend to make

for similar organisational superstructures. Haraoki (1986), Negandi (1979), Pang and

Oliver (1988), and Prentice (1990) have claimed that cultural differences have less

importance in designing international organisational practices, although management

and personnel management practices are slightly influenced by national culture. For

example, in the UK Japanese manufacturing companies introduced personnel practices

that best fit the business strategy instead of traditional Japanese practices (Pang &

Oliver, 1988). Prentice (1990) also believes that best management practices or style will

evolve in the future irrespective of culture. Alternatively, (Caligieri & Stroh, 1995)

claimed that national culture is not the only key to establishing HRM strategies. The

organisational philosophy of the company and the country’s rules and regulations when

setting the HRM strategy in any organisation are more important.

There has been a mixed response regarding the idea of convergence in HRM practices,

some commentators (i.e. Chen, 2004; McGaughey & De Cieri, 1999; Rhodes et al.,

2008) emphasize that there is a need to adapt to local conditions and cultures, because it

is culture that shapes the organisation and its employee’s attitudes. Others such as

Cooper (1998) Morris, Hassard, and McCann (2006), Von Glinow, Drost, and

Teagarden (2002), and McGaughey and De Cieri (1999) proposed the convergence in

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HRM practices and believed that an organisation’s tendency is towards increasing or

adopting similar successful practices. This is due to the influence of improved

technological transfers, organisational collaborations and global communication.

Despite their location organisations are becoming more alike in their operations,

structures, functions and technologies (Rhodes et al., 2008). Managers are inclined to

hold common behaviours and attitudes in spite of cultural differences (McGaughey &

De Cieri, 1999).

Ngo, Turban, Lau, and Lui (1998) and Easterby Smith, Malina, and Lu Yuan (1995)

emphasized that the essential factors to highlight are global integration and local

adaptation. Globalization and responsiveness to the complexities involved in cross-

cultural interactions has been expanding. At the micro level, behaviour of individuals,

experiences, perceptions and values vary within national and ethnic cultures (Sanyal,

2000). As a result, to be successful in the new economy it is recognized that it is

important to be familiar with other cultures, their behaviours, perception, values and

impact on the organisation (Francesco & Gold, 2005). Internationalization of business

and mobility in the global labour market has created difficulties and failure of

international business due to a lack of understanding of the cultural background rather

than that of market conditions (Podrug, 2011).

Businesses are continuing to expand into more diverse environments therefore it is

important to establish or determine the organisations abilities to deliver services in such

heterogeneous markets (Overby, Gardial, & Woodruff, 2004). According to Palich and

Gomez-Mejia (1999) globalisation has enhanced managerial and marketing adoption

due to the exposure to differences in national cultures. National cultural values have

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shaped managerial behaviours and strategy formulation (Anwar & Chaker, 2003).

Therefore, cultural factors are very important in HRM policy development, because

transfer from one culture to another is very difficult so the more similar the culture, the

easier the transfer.

Hodgetts and Luthans (1990) also assert that, most HRM practices cannot be exactly

transferred because of the cultural diversity between one country and another. They say

‘hard’ factors such as organisations’ structure are easier to transfer than the ‘soft’

factors such as organisations’ practices. This shows that for organisations structural

change is easy but procedural change is difficult. As Adler, Dokter, and Redding (1986)

argued organisations are becoming similar in their ‘macro-variables’ like structure and

technology but may be dissimilar in their culture based ‘micro-variables’ such as,

employee’s attitudes within organisations. Sparrow (1995) believes that a number of

distinctive national patterns of HRM are influenced by level of ownership, size of the

organisations, extension of stockholders, bias attitude of employer and employee, level

of authority, management style, national business system, contracting-sourcing out and

the overall perceived importance of the HRM role in the organisation. Tayeb (1998)

observed that companies have to be responsive to their local conditions in terms of its

history, leadership, business and HRM practices, and policies. Most firms do have

corporation-wide HRM practices but their application in the form of country-specific

HRM practices is difficult.

According to Newman and Nollen (1996) until now, the American management theory

that “one size fits all” means a good manager in the USA will be equally good in other

countries and the same management practices are similarly effective in any part of the

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world has prevailed. But this view is challengeable as managerial behaviours, attitudes

and values differ across national cultures, with differences in national cultures creating

differences in management practices. For example a Big Mac is the same around the

world but practices of McDonald’s differ across cultures (Newman & Nollen, 1996).

Hence the differences among national culture and management practices have a greater

affect on workplace performance. Because culture colours many aspects of an

individual’s behaviour, knowledge of a culture and its influences are helpful to

managers in a multicultural business environment (Javidan, Dorfman, Sully de Luque,

& House, 2006).

Further research (i.e. House, Hanges, Javidan, Dorfman, & Gupta, 2004; Rosenzweig &

Nohria, 1994) attempts to address the concept of culture and to measure cultural

differences in relation to management practice, which found that national cultures and

management practices vary (Haire, Ghiselli, & Porter, 1963; Hofstede, 1980a, 1991;

Laurent, 1983, 1986; Trompenaars, 1993 as cited in Newman & Nollen, 1996).

Moreover, Schneider and De Meyer (1991) concur, arguing that national culture varies

from nation to nation and that management practices like strategic decision making,

leadership style and human resource management also vary.

National culture can be viewed as a framework for organizing employees based on their

understanding of work, and expectations of their treatment, it suggests a path for action

and a preferable set of outcomes. Therefore, if management practices are inconsistent

with national culture, employees’ become dissatisfied, uncomfortable, uncommitted and

their performance becomes poor (Newman & Nollen, 1996). Management practices

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with consistent national cultural values yield commitment, self-efficacy and high

performance (Early, 1994; Wright & Mischel, 1987).

It has been noted that the impact of culture and values on management and HRM

practices are inevitable. Competitive advantage can be gained if correct management

practices are adopted with alignment of national culture and organisational culture

(Newman & Nollen, 1996). The research supports the importance of analogous

management practices and national culture for better performance level of the

employees.

Various researchers such as Khilji (2002), Chevrier (2009), Gerhart (2009), and Javidan

et al. (2006) have examined national culture, from many perspectives (modes of

convergence and divergence; national culture relevance to management in a global

context; national culture constraints; and cross cultural lessons in leadership).

The significance of the factorial structure of the national culture should be regarded as

an important aspect in determining national culture and its prospects for identifying

specific, quantifiable output of work. On the basis of the research and literature covered

in this section, the following hypothesis was proposed:

Hd: The factor structure of national culture are interrelated, multi-dimensional and

optimal predictors.

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2.8 Organisational Culture

Organisational culture has been described as a set of values, assumptions and beliefs

shared by organisational members and showing new members acceptable ways of

working in the organisation (Daft, 2005). Organisational cultures are regarded as

‘gestalts’: a person’s set of experiences, knowledge and thoughts as a whole, that are

accepted and appreciated by the organisational members (De Hilal, 2006).

Organisational environments can differ across countries in a range of areas such as rules,

regulations, institutional set up, market, work force characteristics and culture. Different

countries impose significant limitations on organisations: what they can and cannot do.

This leads to greater localization and greater variance between-countries rather than

within-countries (Gerhart, 2009).

Bolman and Deal (1984) developed frames to understand organisations and leadership:

the structural (factory- and machine-like imagery), human resource (family-like

imagery), political (jungle), and symbolic (temple and theater) dimensions of

organizational life.

Bolman and Deal (1984) argue that these frames provide lenses that bring the world into

focus, and serve as tools for action. Any single tool may have certain strengths and

limitations. Therefore, managers face increasingly complex problems and thus

managerial and organizational success become more and more dependent on the ability

to generate a diverse set of such tools, the capability to use each tool with insight and

skill, and the capacity to appropriately match the frames with different situations.

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Organisational culture along with relevant HR practices can be a factor, used by the

organisations to create values and uniqueness themselves (Barney & Wright, 1998). The

claim that organisations mirror the national culture of the country where they are

located is useful in clarifying issues of constraint and management discretion in

organisations, because heterogeneity of culture is mirrored by a multitude of cultural

values within organisations (Büschgens, Bausch, & Balkin, 2013). Organisations are

compelled to respond and adapt to environmental pressures, to follow accepted ways of

doing business to be considered legitimate by their customers and investors. With

certain scenarios, the institutional influences that are industry specific or country

specific are expected to create similarities, across the organisation, in their structure and

practices, (Gerhart, 2009).

Culture, both national and organisational, is a measure of practices, basic assumptions

and preferred values (Hofstede, 1980a). National culture can be defined in terms of

values using questions that address the issue of what ‘should be’ whereas organisational

culture is defined in terms of practices using descriptors that address the issue of ‘what

is’ (Hofstede, Neuijen, Ohayv, et al., 1990). As Hofstede (2001) argued national culture

constrains organisational culture. As such, these claims fit with institutional theory, but

are in contrast with the perspectives for weighting management’s choice and the role of

uniqueness for sustained competitive advantages such as the resource based view (RBV)

(Gerhart, 2009).

However, the RBV focus emphasizes the importance of organisations in strategy

research (Hoopes et al., 2003), and how an organisation becomes different or is different

‘looking inside’ with its rare and non replicable resources and capabilities for sustained

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competitive advantages (Barney, 1991; Carmeli & Tishler, 2004). Hence, RBV leads to

greater variance in organisational practices and attributes and supports being different

(Gerhart, 2009). As an example it has been observed by (Barney & Wright, 1998) that

an important implication of RBV is seen in managing the resources such as ‘human

capital skills’, ‘employee commitment’, ‘culture’ and ‘teamwork’ for a sustained

competitive advantage. The role of organisational culture and related concepts like

distinctive values, non-substitutability and ideology are highlighted in the academic

studies as characteristics that help organisations to perform better (Collins, 2001;

Denison, 1990; Kotter & Heskett, 1992). As Lawler (2003, p. 35) says “the

organisational design elements of people, structure, rewards, and processes lead to …

corporate culture”.

Chan et al. (2004) say that organisational culture greatly influences the way HR policies

and practices are implemented. For example bureaucratic cultures discourage employee

initiative and employees are asked to follow desired rules and regulations with little or

no room for innovation or risk taking. Generally in Asian firms, particularly public

sector work, with an autocratic leadership style and high power distance characteristics,

rewarding innovation is hard because of little empowerment and a bureaucratic

environment (Prabhu, 2005). In developing nations harmony is highly valued in social

and work relationships and effort is taken to avoid open conflicts in comparison to

developed nations (Rhodes et al., 2008).

Organisations do develop personalities and identities and try to distinguish themselves

from one another while keeping pace with environmental threats, opportunities and

challenges. Due to the growing involvement of HRM in planning and corporate decision

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making, the analysis of organisational culture and HR functions has become very

important (Ulrich, 1984). While analysing organisational culture the HR manager can

maximise organisation usefulness through an understanding of the traditions, moral

dilemmas, political manoeuvrings, myths and biases that reflect organisational realities

(Ulrich, 1984). Therefore, HR executives should better understand the organisational

cultural implication of HR functions such as reward, promotion and performance

appraisals. This is important because HRM is involved in planning and implementing of

plans as well as day to day decision making (Fombrun et al., 1984).

HRM practices are considered influential interpreters of change, and to influence the

performance of organisations, the most important area managers should emphasize is

the managing of people (Rhodes et al., 2008). Therefore HRM practices play a vital role

in explaining performance in different cultural environments (Chan et al., 2004).

Organisational objectives aligned with HRM practices and perceived organisational

performance have a positive association that creates a system of high performance. This

guides the implementation of consistent HR practices and policies which can align

human capital to achieve organisational objectives through the development of a high

performance culture (Huselid, Jacson, & Schuler, 1997; Rhodes et al., 2008). However,

Lunnan et al. (2005) point out that despite the positive influence of HR practices on

organisational performance, its transferability, autonomy and effectiveness to non-

western companies is ambiguous.

Within organisations employees can gain a sense of both personalization and belonging

and identification with the organisation, where they share the successes and the failures

of their achievements (Moreland & Levine, 2001). Through both individual and group

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work organisational identification increases employees’ commitment which enhances

their performance and support of organisational goals in their daily routine work

(Campbell & Göritz, 2014). Employees develop expectations about their role such as

work coordination, social relations and group membership, which shape employee

behaviour through the underlying values, norms and assumptions within the

organisation (Alvesson, 2011). The focus on clear rules, procedures and expected

behaviours was appropriate to underpin this study because understanding organisational

practices in a cross-cultural context, is helpful to provide structure and process to direct

employee behaviours to support organisational goals. The impact of institutional rules

and expectations on OC is considered to be both a constraining and shaping factor in

terms of OC development (Hofstede, 2001), and therefore as organisations are symbolic

entities they perform according to culturally determined models which reinforce

underlying cultural values and norms (Hofstede, 2001).

In the organisational context, organisational culture is a common variable (Zhang & Liu,

2010) and is viewed as organisational traits comprising mindsets, outlooks and

behaviours (Ekvall, 1996). Given the relevance of organisational culture to a diverse set

of organisational and psychological variables and a way in which the firm conducts its

business there is agreement that organisational culture is a useful construct (Barney,

1986; Schein, 1992, 2010; Trice & Beyer, 1993). More recently many organisations

have devoted considerable resources to make organisational culture a centre of attention

and motivating efficient employees to improve performance (Kacmar, Andrews, Van

Rooy, Steilberg, & Cerrone, 2006; Weng, McElroy, Morrow, & Liu, 2010). To achieve

this it is necessary to identify the desires of employees to keep them dedicated and

provide them with a constructive work environment where they consider that their

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diversity is respected and recognized and they feel capable of moving business forward

(Milory, 2004). Organisational culture has an influence on employees’ performance

(Kulik, Cregan, Metz, & Brown, 2009) in a way that links their self-image to their work

(André, 2008). To retain employees, the organisational environment should be

supportive of employees because the appropriate use of the workforce develops the

performance of an organisation (Ullah, 2013). Employees develop and learn values and

assumptions that help resolve issues confronting it, and thus the organisation’s culture

grows and evolves. This is why organisational culture is seen as a product of its

members’ collective process of learning and problem solving in order to survive within

the organisation (Owusu, 2012; Schultz, 1995).

A number of researchers such as Acar and Acar (2014), Büschgens et al. (2013), Ashraf

and Khan (2013a), Ullah (2013) and Mavondo and Farrell (2003) have examined

organisational culture, from many perspectives (organisational culture and innovations;

organisational culture effects on performance; organisational innovation and

effectiveness; and cultural orientation).

In determining the factor structure of organisational culture and its prospects for

identifying specific, quantifiable output of work, based on the research and literature

presented here, the following hypothesis was posited:

He: The factor structure of organisational culture are interrelated, multi-


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The remainder part of the chapter focuses on the relevant literature related to

organisational citizenship behaviour, the outcome construct and discusses the

relationships between the constructs of the study.

2.9 Organisational Citizenship Behaviour

Organisational citizenship behaviour (OCB) is one of the most widely studied topics in

organisational behaviour research (Emmerik et al., 2005; MacKenzie et al., 1993). It is a

concept that was initially introduced by Bateman and Organ (1983), who defined OCB

as “individual behaviour that is discretionary, not directly or explicitly recognized by

the formal reward system, and that in the aggregate promotes the effective functioning

of the organisation” (Organ, 1988, p. 4). OCB defines a set of desirable organisational

behaviours that demonstrate multidimensional liaison with positive organisational

results (Walz & Niehoff, 1996, 2000). Interaction between employees and supervisors is

essential and unavoidable at the workplace which means it is important to enhance

harmony to ensure mutual benefits and high quality outcomes. OCB among employees

improves organisational performance and leads to greater job satisfaction and

succession management (Wan, 2011).

Shweta and Jha (2012) state that over the past three decades OCB has been a powerful

and influential concept. It is generally connected to improved process, innovativeness,

effectiveness and increased capabilities of employees to cope with various

organisational uncertainties. Shweta and Jha (2012) characterize OCB as an employee’s

discretionary efforts to benefit the organisation without any expected rewards. Payne

and Webber (2006) argued that employee satisfaction is positively related to OCB,

which leads to efficiency and productivity maximization.

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According to Farrell and Oczkowski (2012, p. 365) “OCBs are difficult to imitate and

thus can be a source of competitive advantage”. In a competitive age organisations not

only need to be functional and productive but need to have loyal and efficient

employees. Renowned organisations depend upon the employees who work beyond

their formal job responsibilities and are ready to sacrifice their extra time and energy for

the organisation. This phenomenon is important for developing a culture of cooperation

and successful performances (Kashif, Khan, & Rafi, 2011). OCB has three

characteristics; firstly as a type of discretionary behaviour, performed by the employee

as a personal choice that is not included in the job description; secondly as an

enforceable requirement of the job description; finally, as a positive contribution to

overall organisational effectiveness (Kashif et al., 2011).

OCB as a multidimensional concept has been the subject of research in both the western

and non western context (Jahangir et al., 2004). There has been an extensive focus on

the effects of OCB on individual and organisational performance that has resulted in a

general consensus that OCB addresses silent behaviours in organisational enterprise

(Barbuto et al., 2001). The survival or prosperity of organisations is positively enhanced

by employees behaving as good citizens by engaging in a variety of positive behaviours

(Organ, 1988).

OCB has been identified with five distinct dimensions: (1) conscientiousness, or

discretionary behaviour (2) altruism, or helping a specific other person with an

organisationally-relevant task or problem; (3) civic virtue, which is behaving or

indicating willingness to responsibly participate in the life of the company; (4)

sportsmanship, which is any behaviour demonstrating tolerance of less than ideal

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circumstances without complaining; and (5) courtesy, or efforts to prevent work-related

problems with others (Organ, 1988; Podsakoff et al., 1990).

Considering the importance of good citizenship for organisations, OCB has received

considerable attention and focus over recent years and has remained a high priority for

organisational scholars, particularly in the context of the growing service imperative

facing organisations (Organ, 1988; Schneider, 1990). In times of crisis OCB has an

impact on workgroup efficiency (Organ, 1988). For example, its dimensions of

conscientiousness and altruism or willingness for helping others results in reduced inter-

group conflict, and enhanced employee motivational levels, factors which help

managers to focus on more important organisational matters (MacKenzie, Podsakoff, &

Podsakoff, 2011).

Feldman (2001, p. 164) argued that “in an organisational context, discretion has been

defined as an individual’s right to make choices based on an authoritative assessment of

the situation”. This suggests that job discretion adds to an employee’s sense of

responsibility regarding work that results in better outcomes and enhances their

willingness to go the ‘extra mile’ to do the tasks (Snape & Redman, 2010). In contrast

low job discretion can result in employees displaying ‘learned helplessness’ and

‘reduced industriousness’ which leads to poor performance and low participation in

citizenship behaviours (Aselage & Eisenberger, 2003; Eisenberger, 1992; Miller &

Seligman, 1975).

Given the importance of employee performance in the context of its attractive

consequences for organisations, employee participation has increasingly been viewed as

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an essential element in elevating organisational effectiveness (Kataria, Garg, & Rastogi,

2013; Saks, 2006). Employee engagement or participation encourages OCB, and OCB

increases organisational effectiveness (Bakker, Demerouti, & Verbeke, 2004; Walz &

Niehoff, 2000). Organisations survive well when their employees behave as good

citizens by engaging themselves positively and constructively in all activities at work

(Kashif et al., 2011). Koys (2006) considers that OCBs help organisations to compete

with limited resources, increase productivity, improve coordination between employees,

reduce employee turnover, and enhance organisational adaptability as well as in

maximizing profitability.

Many authors consider OCB to be an individual behaviour which is not part of formal

job descriptions or behaviours expected under formal reward systems in the

organisation (Hall, Zinko, Perryman, & Ferris, 2009; Organ, Podsakoff, & MacKenzie,

2006; Podsakoff, MacKenzie, Paine, & Bachrach, 2000). Thus, it is completely optional

and where employees are more likely to exhibit their personal choice and omission of

these behaviours is not considered as punishable (Chahal & Mehta, 2010). Furthermore,

(Shahin, Shabani, & Khazaei Pool, 2014) described three features of OCB: (1)

employees willingness to follow rules, or continue to volunteer, (2) employees are

prepared to undertake tasks that have organisational advantages, and (3) OCB is a

multi-faceted entity. OCB is the employees’ tendency to go beyond their expected work

duties, and to help other co-workers align individual interest with organisational

interests. Generally OCB features are behaviours that cannot be strengthened directly

and are special and extraordinary endeavours expected by the organisation for its

success (Korkmaz & Arpaci, 2009). OCBs are associated with various indicators of

employee and organisational effectiveness. An employee performing OCBs is evaluated

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more favourably with regard to his/her performance appraisals, overall job performance

and promotability (Podsakoff, Whiting, Podsakoff, & Blume, 2009). Organ et al. (2006)

argue that citizenship behaviour assists a positive working environment that helps

organisations to attract and retain employees.

Organisational identification is essential where individuals view themselves as bound to

an organisation (Chen, Yu, Hsu, Lin, & Lou, 2013). Employees’ organisational

identification in association with OCB encourages employees to contribute more

productively and generates feelings of satisfaction and trust so they are more likely to

stay and work on behalf of the organisation (Edwards & Peccei, 2010; Haslam, Jetten,

& Waghorn, 2009). For this reason management understanding of the factors that either

directly or indirectly affects OCB is critical to interaction with employees that promote

OCB, predicts favourable outcomes and maintains benefits to the organisation (Chen et

al., 2013). The outcome of this understanding results in reduced turnover, less

resentment towards the supervisors and organisation (Aryee, Chen, Sun, & Debrah,

2007), increased employee confidence in management (Aycan, 2001), interactive and

‘social’ elements of OCB (Salam, Cox, & Sims, 1996), and serves to assist supervisors’

in promoting an employee’s level of motivation towards OCBs (Yaffe & Kark, 2011).

Therefore, OCBs are viewed as important elements for organisational performance,

because an organisation that focuses more on OCB is found to have reduced turnover,

absenteeism and more loyal and satisfied employees following improved organisational

services (Chahal & Mehta, 2010). Understanding the impact of OCB is vital in

strengthening both employee and organisational performance. Through OCBs managers

enhance their knowledge to provide benefits to the organisation with the help of loyal

and satisfied employees. Thus, better understanding of the individual behaviour is of

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great help to HR managers and practitioners in delegating responsibilities and exhibiting

commitment towards organisational goals in association with organisational

identification and OCB (Chahal & Mehta, 2010).

Job satisfaction is the emotional orientation of employees towards their job roles

(Oshagbemi, 2000). It is a pleasurable feeling which is achieved after completion of a

task or fulfilment of a particular job (Organ, 1988; Tanriverdi, 2008). The higher the job

satisfaction the better the performance at work. Job satisfaction incorporates a different

type of satisfaction such as, satisfaction with rewards and promotions, satisfaction with

supervisors and colleagues and with the work itself (Putman, 2002; Vitell &

Singhapakdi, 2008) and is of vital importance as it affects the employee behaviour

which ultimately affects performance of the organisation (Rowden, 2002). Organ and

Konovsky (1989) found that job satisfaction is significantly related with OCB.

Employees satisfied with their working conditions and jobs demonstrate better OCB and

perform well in their tasks. This means job satisfaction is an important aspect which

helps develop better OCB (Swaminathan & Jawahar, 2013).

Organisational commitment is a “psychological state that binds the individual to the

organisation” which ultimately results in low turnover among employees (Allen &

Meyer, 1990, p. 14). A model of organisational commitment proposed by Allen and

Meyer (1990) consisted of three features: (1) affective commitment, emotional

attachment of employees with the organisation, (2) continuance commitment, employee

perception of costs on quitting the organisation, and (3) normative commitment, a

feeling of belonging and obligation among employees to stay with the organisation.

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Employees can experience these commitments to varying degrees (Awad & Alhashemi,

2012).

High organisational commitment brings constructive etiquettes and manners among

employees that increase performance and reduce absenteeism and turnover within

organisations (Saks, 2006). Namasivayam and Zhao (2007) explain organisational

commitments as an employee’s response to the organisation whereas the employee’s

response to a particular job is job satisfaction. Organisational success, stability and

productivity largely depend on both job satisfaction and organisational commitment

(Koys, 2006).

In this sense, OCB increases both employer and employee productivity through

improved coordination, strengthened organisational ability to hold competitive

employees and increased flexibility to environmental changes and enhanced

performances (Moideenkutty, 2009). Therefore, OCBs are extra role behaviours that

promote organisational profits without inclusion in the organisational official profile,

discipline or compensation system (Watty-Benjamin & Udechukwu, 2014). This

implies aspects of employee and employer reciprocity and ‘gestures of good will’ by

both parties (Hopkins, 2002). Thus, organisational commitment fosters employee

interest that adds to OCB and retention and, thereby, contributes to organisational

effectiveness (Watty-Benjamin & Udechukwu, 2014).

OCB is a key factor in promoting organisational effectiveness. Its absence can lead to a

dysfunctional organisation, an unstable and disloyal workforce and a decline in

organisational performance (Motowidlo, 2003). Organisations can be successful and can

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have better performance through facilitating employee engagement in OCB (Yen &

Niehoff, 2004). Thus, OCB and factors influencing OCB have remained a central theme

of researchers (Teh, Boerhannoeddin, & Ismail, 2012). For example, performance

appraisal systems of organisations may affect OCB. A fair perception of performance

appraisal among employees results in more adherence to OCB (Becton, Giles, &

Schraeder, 2008).

Many researchers such as Farrell and Oczkowski (2012); Watty-Benjamin and

Udechukwu (2014); Husin et al. (2012) and Aryee, Budhwar, and Chen (2002) have

examined OCB from many perspectives (government and employee OCB in the Virgin

Island; organisational identification and OCB; HRM practices, OCB and perceived

service quality in golf courses; and organisational justice and work outcomes).

The factorial structure of organisational citizenship behaviour should be regarded as an

important aspect in determining its prospects, in identifying specific, quantifiable output

of work. Based on the prior research and literature presented here, the following

hypothesis is tested.

Hf: The factor structure of organisational citizenship behaviour are

interrelated, multi-dimensional and optimal predictors.

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2.10 Relationships between the Constructs: Reward Management System,

Promotion Practices, Performance Appraisal System, National Culture,

Organisational Culture and Organisational Citizenship Behaviour.

This section presents the review of literature related to the relationships between the

constructs of the study.

2.10.1 Reward Management System and Promotion Practices

The reward management system is often considered a key management tool which

contributes to organisational effectiveness by influencing employee behaviour to

enhance performance and achieve more productivity within the organisation. A reward

management system also carries other objectives such as cost control, legal conformity

and fair treatment of employees (Kerrin & Oliver, 2002).

A traditional compensation system is controlled by base payments, often considered as

bureaucratic models of organisation, where employees are paid according to the skills

they bring and utilise in the job. In contrast, there is often no reward or motivation for

flexibility, teamwork and judgement (Kerrin & Oliver, 2002).

The organisation needs to influence managerial efforts and performance through

suitable control systems. This requires straightforward designing of a reward system

that is both monetary and comprehensive (Kominis & Emmanuel, 2005). The rewards

for the employees may have different perceived values depending on employee needs

such as performance based financial rewards, authority and status related awards and

market based financial rewards (Vancil & Buddrus, 1979). To measure assessment of

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which reward impacts employee performance and motivation is perceived to be difficult,

although it is important for organisational survival and success (Kominis & Emmanuel,

2005). Furthermore, Kominis and Emmanuel (2005) suggest that the motivational

impact of rewards is central to both management control and the organisational

psychology.

However, social psychology literature mentions some concerns that extrinsic rewards

may affect intrinsic motivation, which ultimately influences outcomes and productivity.

McCausland, Pouliakas, and Theodossiou (2005) linked these concerns to the

underlying socio-economics of performance of employees in relation to alternative

reward policies. Both extrinsic rewards such as pay, benefits and promotions and

intrinsic rewards such as doing meaningful work, increase employees’ sense of self-

esteem or self-worth (Stumpf, Tymon, Favorito, & Smith, 2013), and both types of

reward are considered to influence outcomes that include work involvement, turnover

and overall organisational performance.

Employees efforts in productive activities are governed by two main aspects. Firstly,

they determine which and how much effort to invest at the organisation, and secondly

they determine opportunities for promotion with a pay rise. This is a consequences

based activity where employees feel encouraged and satisfied if their efforts are valued

and they have a chance to prove to managers their suitability for promotion. On the

contrary they put in less effort when they feel discouraged and unhappy (Epstein &

Ward, 2006). Thus rewards are considered as an exchange process of employee efforts

to achieve organisational objectives. It is understood that extrinsic and intrinsic rewards

impact each other within certain societies. The importance of rewards and opportunities

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for advancement are considered as significant determinants of organisational

commitment (Morris, Yaacob, & Wood, 2004; Thompson & Mchugh, 1990).

2.10.2 Promotion Practices and Performance Appraisal System

There is a well established tradition that promotion plays a dual role in an organisation:

(1) assigning a job that is best suited to the employees’ capabilities, and (2) as an

incentive for performing well in the job (Fairburn & Malcomson, 2001; Lazear & Rosen,

1981). Promotion establishes a sense of discipline among managers because of its

characteristics such as performance related pay in which managers ensure that the most

suitable employee is promoted for the higher level job, and given appropriate salary

increases (Fairburn & Malcomson, 2001). Organisations need to play a role in the

justice relationship between promotion decisions and employee reactions as employees

with fair justice perceptions of rewards, such as promotion into higher level attachments,

will have positive motivation and encouragement (Cheng, 2014). Greenberg (1986)

surveyed decisions about promotion opportunities and pay increases and found that for

the fair distribution of rewards, decisions of promotion and pay increases should be

based on actual performance.

One of the core objectives of performance appraisal is to determine the employees’

potential for promotion to higher level jobs (Milliman, Nason, Zhu, & Cieri, 2002).

Criterion for promotion includes both abstract factors such as experience, personality

traits, knowledge and interpersonal relationship and concrete factors such as seniority,

educational level, and performance (Chang, 2009). Chiu (2009) states that it is not

necessary to consider all these factors when promoting an employee, it depends on the

organisational requirement and position. Organisations are facing two essential

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challenges to enhance the productivity of their workforce: an appropriate incentive

scheme to encourage employees to put in efforts, and a mechanism for selection of the

most suitable employee (Schöttner & Thiele, 2010). Resulting rewards for performance

encourage an employee to perform better and serve as a selection device (Schöttner &

Thiele, 2010). Performance of any institution is based on the employees’ competency

and performance (Offermann, Bailey, Vasilopoulos, Seal, & Sass, 2004). Furthermore,

Qiao and Wang (2009) found in their investigations that promotions played a vital role

in enhancing work performance.

2.10.3 Reward Management System and Performance Appraisal System

The rise of reward management has remained unchallenged. Many advocate it as the

“best thing since sliced bread”, although gauging reward management alone as a

practice and concept has been seen as difficult (Smith, 1993, p. 45). Designing rewards

to increase performance is one of the core objectives of reward management. This

practice is praised and has prevailed for the last 35 years in continuing attempts to link

rewards to performance in both public and private sectors. In this regard reward systems

and employees’ performance have been the focus of mechanisms to align employees’

actions with output delivery (Lapsley, 2008; Smith, 1993). Performance based reward

systems came to prominence in the 1980s for public sector employees including

education, health and civil service (Smith, 1993). These rewards are perceived to impart

more benefits to employees than previous reward management approaches. Murlis and

Wright (1985) argue that some performance based rewards, which were initially

implemented in both private and public sectors, are still in place and this invites

attention to get things done right.

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A clearer expectation of organisational leaders enhances employee understanding of the

link between rewards and resulting performance (Densten, 2006). Reward systems and

performance appraisal systems promote output, performance standards, accountability

and achievable targets in the public sector (Azzone & Palermo, 2011). However, Flury

and Schedler (2006) and Hood and Peters (2004) argue that effective adoption of

rewards and performance appraisal systems seems complex in public sector

organisations. Although authors such as Fay and Thompson (2001); Henderson (1989);

Latham, Almost, Mann, and Moore (2005) assert that there is an assumption that

employee performance can be improved through developing an unambiguous link

between contribution and rewards with specified objectives. This could be achieved

through planning of objectives in terms of professional development, quality outcomes

and competencies.

Management literature identifies various limitations to the actual practices of reward

and performance appraisal. Problems arise between the appraiser and appraisee in

setting situational factors, uncontrollable performance constraints, fairness towards

perceptions of appraisals and planning periodic goals. These problems create crises

within the employee and employer relationships, ultimately leading to increased friction

that can make the situation worse within the organisation (Azzone & Palermo, 2011;

Latham et al., 2005). Thus implementation of actual appraisals and reward management

systems may be difficult due to the complex setting of public sector organisations

(Lapsley, 2008; O'Donnell, 1998). To resolve these issues managers need to have the

necessary proficiency, knowledge and capacity skills, particularly in public sector

bureaucrats, to exert practices of reward and performance appraisal (Schofield, 2004).

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The reward an employee receives in return for the contribution made in the workplace,

and the only practice that managers employ to evaluate employee contribution and work

dynamics among employees is performance appraisal (Cheng, 2014). Unfair perception

of rewards leads to unhappy and unhelpful feelings among employees and is likely to

lead to poor performance.

2.10.4 Reward Management System and National Culture

The scope of reward or compensation is divergent, offering varying formats in different

corners of the world (Wright, 2010). The various categories of reward are commonly

described as extrinsic or tangible including pay and benefits, and intrinsic or intangible

including work satisfaction and recognition in the workplace (Perkins & White, 2008).

Another category is ‘total reward’ that includes a strategic coherence of extrinsic and

intrinsic rewards (WorldatWork, 2007). These rewards include pay, recognition, work

life balance, employee development and performance feedback (Wright, 2010).

The transferability of reward systems is viewed from both convergence and divergence

points of view (Nyambegera et al., 2000). Convergence provides a view that regardless

of differences in national culture universal best practices can be transferred due to

increasing cultural similarities (Kerr et al., 1960). In contrast, divergence thought

provides a view that transferability of best practice is dubious because of the reward

systems embeddedness in the culture (Pudelko & Harzing, 2007). Hofstede (1980a,

1991) defines national culture as the collective programming of the mind, values,

norms, assumptions and beliefs learned in childhood in a national context and are

distinguishable from another group of people. National culture resides in the mental

make-up of the people and is so deeply embedded in everyday life that it is relatively

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hard to change. The people of a particular nationality are conditioned for a particular

pattern of life experiences (Hofstede, 1980a). So it is important to design reward

management systems with an understanding of the depth of national culture of a

particular society. The aligned reward systems will encourage employees to produce

more within the organisation.

Most cultural studies on human resource management practices (HRMP) have adopted

Hofstede’s national cultural dimensions based on pioneering research conducted on the

multinational company IBM. His research categorised culture into distinct dimensions

(Hofstede & Minkov, 2010). Thus, preferences of reward are shaped by the cultural

settings, and the rewards valued in one society may not be preferred in another society.

Likewise in the convergence view, motivation theories also suggest that an organisation

benefits from using performance related reward system (PRRS) because these allow

alignment of organisational objectives’ with employee behaviour. Equity theory

(Adams, 1963), agency theory (Eisenhardt, 1989), reinforcement theory (Skinner, 1969)

and expectancy theory (Vroom, 1964) suggest a linkage between pay and performance.

If the rewards are perceived as fair they would result in better performance behaviour

(Milkovich & Newman, 2002). However, from the divergence point of view, cultural

self presentation theory (Erez & Earley, 1993) suggests that cultural values play a role

as moderator between employee behaviour and motivation. So this theory purports that

the reward system depends on the effects management expect it to have on the different

aspects, where the relevant aspects are culturally defined.

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2.10.5 Reward Management System and Organisational Culture

The reward management system includes the four elements of benefits, compensation,

appreciation and recognition. Employees anticipate these elements in return for the tasks

they perform. The reward management system comprising these elements are normally

set by the organisations and managers can contribute to the reward management system

by designing the reward management system in such a way that every employee

understands the message that the reward system of the organisation is populated with an

array of meaningful rewards (Sylvia, 2014). ‘There is no reward except with the task

itself’ so the employees feel motivated when their performance is rewarded with

incentives (Deci, 1971, p. 105). Thus organisations need to develop a culture where

employees clearly know that their work is valued. Gomez-Mejia and Balkin (1992)

cited in Milne (2007, p. 29) defined rewards programmes as “deliberate utilisation of

the pay system as an essential integrating mechanism through which the efforts of

individuals are directed towards the achievement of an organisation’s strategic

objectives”. Rewards are believed to encourage outstanding performance, promote

learning and ongoing development, strengthen an organisation’s value, and pursue

achievement (Milne, 2007). All organisations provide pay, promotions and other

incentives in order to encourage employees to perform well and produce better

outcomes focused on organisational objectives (Cameron & Pierce, 1994; Stredwick,

2000).

Organisational culture is defined in many ways with different perspectives. For example

Meyerson and Martin (1987, p. 626) identified organisational culture with three

perspectives: (1) ‘integration perspective’ in which it is assumed that each organisation

has one culture or an organisation with ‘monolithic’ culture where every member

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shares the same values, beliefs and assumptions; (2) ‘differentiation perspective’ in

which culture is assumed to be an open system, influenced by both internal and external

environments and it is seen as a complex system of subcultures; (3) ‘fragmentation

perspective’ in which different subcultures are accepted where employees may agree

with values, beliefs and assumptions and disagree or take no notice of some values,

beliefs and norms (Milikić, 2007). It seems that due to different perspectives of

organisational culture, employees’ perceptions towards rewards and benefits can

influence performance at the workplace. Cultural differences do exist within

organisations in terms of perceptions of effectiveness of various HR practices. Cultural

differences impact on HR practices and these differences may be acceptable in some

societies but not in more hierarchical or less individualistic societies (Andreassi, Lawter,

Brockerhoff, & Rutigliano, 2014; Trompenaars & Hampden-Turner, 1997).

2.10.6 Promotion Practices, National Culture and Organisational Culture

Promotion is one of the processes that govern the movement of an employee within the

organisation. Awarding promotion to employees confers opportunities for skill

development, a higher grade, status and job satisfaction or job security, which

eventually help to produce greater productivity in achieving organisational objectives.

Promotional opportunities keep employees performing well, thus saving the expenses of

training and new hiring costs and also tends to lead to less turnover (Saporta & Farjoun,

2003).

To reach a decision about who to promote is one of the more difficult tasks for a

manager because of the consequences for the employee involved as well as the

organisation as a whole. Decision making regarding promotion takes into account

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experience in the job, motivation for hard work and employees’ intelligence and skills

(Furnham & Petrides, 2006). Promotion can be approached through a number of

theories encompassing various perspectives of promotion such as procedural justice

theory, equity theory, allocation preference theory and justice judgement theory

(Colquitt, Greenberg, & Zapata-Phelan, 2005). A promotion decision making theory

suggested by (Powell and Butterfield 2002) has two assumptions: (1) a decision on

promotions is based on information or cues such as position in the organisational

pyramidal hierarchy, experience and qualification, and (2) employers bring together

these cues and information for making decisions. The decisions regarding promotions

impact on both the employer making the decision and the employee who is getting a

promotion as an object of the decision and also all employees in an organisation

(Furnham & Petrides, 2006; Schaubroeck & Lam, 2004).

National cultures are inevitably mingled in societies because of globalisation. Due to

this blend, societies need to interact, in order to share ideas, to learn from each other and

exchange human resources (Dimitrov, 2006). The motivation for such interactions

differs in different disciplines such as sociology, education, psychology, social

psychology, organisational behaviour and management (Dimitrov, 2006). Promotion

processes, psychological contracts related to promotions and the new shapes of careers

are affected by both the national and organisational culture (Bajdo & Dickson, 2001;

Furnham, 2005).

Promotion decisions have important consequences in organisational life as they

influence employee commitment (Lemons & Jones, 2001), absenteeism (Lam &

Schaubroeck, 2000), employee affective reaction (Lam & Schaubroeck, 2000) and

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organisational injustice (Ambrose & Cropanzano, 2003). However, Adams (1965), in

the equity theory proposed that there is an exchange of resources for mutual benefits to

both the employee and the organisation, where employees offer effort, experience and

skills in return for rewards such as promotions (Parker, Nouri, & Hayes, 2011). The

organisation needs to focus on developing ‘human capital’ in order to achieve the

organisational goals, to manage human resources and build skills among employees

(Anderson, 2005; Foss, 2008). This involves employers recognising cultural and ethnic

diversities as an additional source of diverse potential and capacities to improve

organisational performance (Islam, 2013). Thus promotion is often considered as an

instrumental aspect of performance, and promotion of diversity is pivotal in introducing

work in its social context, whereby a culture of dignity and inclusion is created.

2.10.7 Performance Appraisal System and National Culture

At present, developing ‘human capital’ is considered to be one of the most frustrating

rituals at the workplace. Although it is often believed to be the most valuable resource a

organisation has, thus developing, managing, rewarding, as well as evaluating them is

an important activity (Kateřina, Andrea, & Gabriela, 2013). The employee performance

appraisal system represents an important part of performance management and is a vital

tool for organisation survival (Gul, Dolu, & Dogutas, 2010; Palaiologos, Papazekos, &

Panayotopoulou, 2011). An effective appraisal system is helpful in identifying

weaknesses, deficiencies and strengths for the employee, employer and organisation.

Through efficient appraisal, the workforce can be guided for improvement and

development (Kateřina et al., 2013; Krug, 1998). The performance appraisal system is a

required process within the organisation through which, an individual’s work dynamics

are individually judged and appraised over a particular time and the results kept on

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record for the purpose of rewarding and developing employees (Coens & Jenkins, 2002).

Murphy and Cleveland (1995) recommend that performance appraisal serves two

purposes one administrative and the other employee development. Thus it serves as a

systematic process for developing employee performance and eventually improving

organisational performance through a formal evaluation (Armstrong & Taylor, 2014).

Culture can shape work attitudes and employee behaviours in the organisation,

consequently impacting on the organisation’s performance. For example positive

cultures with which employees are satisfied are more likely to bring positive outcomes

and more commitment to the organisation (Aarons & Sawitzky, 2006; DeVoe &

Iyengar, 2004).

Performance management practices should be responsive to significant and rapid

environmental changes of the organisation internally as well as externally and ensure

alignment of objectives (Bititci, Turner, & Begemann, 2000). Thus it is interesting to

find what exactly encourages employees to perform well in different cultures and how

an organisation maintains performance to achieve objectives. Dimitrov (2006, p. 37)

argued that “national culture is a central organising principle of employees’

understanding of work, the approaches for obtaining, retaining and increasing

knowledge, as well as the way people are treated in that process. When management

practices are inconsistent with these deeply held values, employees are likely to feel

dissatisfied, distracted, uncomfortable and uncommitted”. Organisations can improve

performances by adapting values, norms, assumptions and rituals to the type of national

culture and by considering its dimensions (Dimitrov, 2006). As Hofstede (1980a) and

House et al. (1999) posited national culture strongly impacts organisations and

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dominates its environmental influences. Therefore, organisations are nested in the

national culture and are influenced by the national pattern of values (Dickson, Aditya, &

Chhokar, 2000). DeVoe and Iyengar (2004) found different perceptions of managers

towards appraisals. For example in developed nations appraisal is linked to the intrinsic

motivation of an employee whereas; in East Asia managers’ perceptions of appraisal are

linked to extrinsic and intrinsic motivation.

2.10.8 Performance Appraisal System and Organisational Culture

Performance appraisal is widely accepted as a central human resource activity in

enhancing performance of both the employee and organisation (Atwater, Wang, Smither,

& Fleenor, 2009). Performance appraisal includes various characteristics such as

‘individual orientation’, ‘organisational orientation’ and ‘evaluation sources’. These

characteristics of performance appraisal help in investigating the employee outcomes,

organisational outcomes, human resource planning, supervisors, subordinates and peers

being appraised (Murphy & Cleveland, 1995; Peretz & Fried, 2012). Culture shapes the

way in which employees are evaluated by their managers (DeVoe & Iyengar, 2004).

Organisational culture has received sufficient acknowledgement in understanding

human systems. It comprises beliefs, customs, values and norms that help the individual

to understand the organisation’s stand, objectives and its functioning such as why and

what to do (Sokro, 2012). Organisational culture is a consensus among employees to

embracing the organisational pattern of values, norms and assumptions (Armstrong,

2009; Sokro, 2012). That is why Hofstede (2005) defined organisational culture as “the

collective programming of the mind” and distinguishes between the national and the

organisational culture. Organisational culture is an important part of an organisational

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environment (Ricky, 2013). The practice of performance appraisal is a managerialism

facet in human resource management that seeks to evaluate workforce performance,

develop competence and identify rewards within the organisations (Fletcher, 2001;

Johnson & Shields, 2007). These developmental approaches of performance appraisal

can be influenced by the organisational culture because of the deeply rooted norms and

traditions of organisational members. In this regard, it is important for managers to

understand the effects of performance appraisal in the context of the organisational

culture that how the performance appraisal system can be improved for their

effectiveness and usefulness in the organisational culture (Levy & Williams, 2004;

Tuytens & Devos, 2012). Organisations are determined by culture, which is used to

describe the dynamics of an organisation. This gives logic to the argument that every

organisation has a different culture and some cultures are better than others (Jarnagin &

Slocum, 2007; Sokro, 2012). Those organisational cultures considered to be successful

are those which are aligned with employees’ objectives (Kotter, 2008).

2.10.9 National Culture and Organisational Culture

Culture is defined in various ways. The cultural attributes are learned and shaped by the

individual throughout their life (Ochoategui, 1998). Cultural values and beliefs are also

developed by an individual within a particular environment. Cultures are means of

expressing assumptions, norms and beliefs (Kattman, 2014), or as Hofstede (2005, p.

282), commented “Collective programming of the mind which distinguishes the

members of one society from another”. Culture is something which is always

developing and adapting. Values and beliefs are passed from generation to generation

within continual environment changes (Miltenburg, 2005). Many authors have provided

numerous frameworks on national culture, for example Trompenaars and Hampden-

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Turner (1998) and Hofstede (2001, 2005) proposed dimensions to examining culture.

Hofstede’s study on IBM including 53 regional subsidiaries provided seminal research

about national culture, and identified several key dimensions of national culture such as,

‘assertiveness’, ‘future-orientation’, ‘gender egalitarianism’, ‘human orientation’,

‘institutional collectivism’, ‘in-group collectivism’, ‘performance orientation’, ‘power

distance’ and ‘uncertainty-avoidance’ (Rao, 2013). These cultural dimensions show

different degrees of emphasis in different countries. For example, Pakistan displays

moderate levels of power distance as well as masculinity, high uncertainty and low

individualism.

Similarly, culture is defined in many ways “a source of family concept, such as,

language, symbol and rituals” (Carmeli, 2005; Pettigrew, 1979, p. 574). Denison (1996)

regarded culture as beliefs, assumptions and values of individuals. National culture

influences organisations, as nations adopt, develop and embrace universal work

practices. An important role is played by beliefs, norms and values in setting a certain

culture (Kattman, 2014). Consequently organisations can modify individual behaviour

in order to modify the effect of national culture (Von Glinow et al., 2002). A better

understanding of the interaction between national and organisational culture can be

helpful in the implementation of management practices (Naor, Linderman, & Schroeder,

2010).“Global solutions to organisation and management problems do not exist” due to

the strong influence of national culture on values at the workplace (Hofstede, 2001, p.

373).

Rousseau (1990) defined organisational culture as a way of living life, fundamental

values, assumptions and behavioural norms of the organisational members. However,

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no precise or universal definition of organisational culture has yet been agreed upon.

However, it is a term used frequently by managers, scholars and researchers (Carmeli,

2005). Hofstede (2005) argued organisational culture is ‘holistic’, ‘historically

determined’, ‘related to the things anthropologists study’, ‘socially constructed’, ‘soft’

and ‘difficult to change’. As a consequence organisational culture can be defined as

earlier mentioned as the collective programming of the mind which distinguishes the

members of one group from another. Therefore national culture differs from

organisational culture, where organisational cultures are said to be learnt by an adult,

even influenced by the nations in which they exist, for example multinational

companies (House, Hanges, Javidan, Dorfman, & Gupta, 2004).

Understanding the culture of, or within, the workplace is helpful in maximising

productivity. Managers’ work to develop their organisational cultures through

developing techniques that can result in an organisation’s effectiveness, typically with

the thought that national culture is more dominant than organisational culture due to its

depth (Kattman, 2014). On the contrary, organisational culture has been found to be

impactful and strong in less inherent national cultures, and an influential manager can

overtake norms, beliefs and assumptions of an individual and create the organisational

culture especially in multinational companies (Mahmood, 2011).

2.10.10 Organisational Citizenship Behaviour, Reward Management System and

Performance Appraisal System

The nature of many businesses have been undergoing transitions from traditional

hierarchical structures to more autonomous team oriented styles (LePine, Erez, &

Johnson, 2002). This has raised the significance of willing participation of employees

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beyond their formal job responsibilities or an individual’s voluntarly contribution to the

organisation. OCB has been the subject of a significant research and has been

considered as beneficial to organisational functioning and viewed as a desirable

behaviour as it reduces the cost of formal mechanisms of management (Becton et al.,

2008). Considering the explicit advantages of OCBs organisations should focus on

encouraging employee citizenship behaviour and reward OCBs through the

performance appraisal process and reward management systems by compensation and

performance acknowledgment (Becton et al., 2008).

Additionally, in the literature OCB has been conceptualised as contextual performance,

prosocial behaviour and organisational spontaneity (Podsakoff et al., 2000). These

features can be affected by a formal evaluation (performance appraisal system) and

reward system (compensation) of the organisation, but can also be motivated through

impression management (Becton et al., 2008; Bolino & Turnley, 2005). The effect of

rewarding and evaluating OCB depends on the motivation of an employee

demonstrating OCB within the organisation. However, Becton et al. (2008) suggests

that there could be two main motives behind employees OCB; firstly a self-serving

motive: employee is extrinsically motivated; secondly, other-oriented motive: employee

is intrinsically motivated. Managers may not be concerned about an individual’s

motivation for exhibiting OCBs, but are aware that an appraised and rewarded

employee tends to show more OCBs. Likewise employees engaged in OCB for both

reasons (self-serving and other-oriented) are more likely to favour rewards for OCB and

formal performance appraisal as the outcome for their behaviour (Becton et al., 2008;

Deckop, Mangel, & Cirka, 1999). Furthermore, inclusion of OCBs in the reward and

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performance appraisal systems may enhance the emotional involvement of an employee

in the work; which eventually produces more productivity within the organisation.

An absence of OCBs in reward and performance appraisal systems may result in

frustration, doubts, anger, resentment and burnout among employees (Cropanzano,

Rupp, & Byrne, 2003; Podsakoff et al., 2000). Therefore, the measurement of

performance is equally important to both employees and the organisation. From the

organisation’s standpoint measuring employee performance could be crucial due to its

effect on employee behaviour and as far as employees are concerned, because of its

consequences for professional development and compensation (Anderson & Oliver,

1987; Vilela, González, & Ferrín, 2008).

2.10.11 Organisational Citizenship Behaviour and Promotion Practices

Changes among the workforce and in the workplace have created the need for a hunt for

talented staff to fill the vacant positions within organisations (Webster & Beehr, 2013).

In competitive environments, attracting a high-quality workforce has forced workers to

be more responsible for managing their own career advancement to meet the

expectations of the competition by even crossing organisational boundaries (Arthur &

Rousseau, 1996; Raabe, Frese, & Beehr, 2007; Webster & Beehr, 2013).

In the face of these environmental pressures employees prefer to be promoted within

their current organisation rather than quitting or moving to another organisation (Segers,

Inceoglu, Vloeberghs, Bartram, & Henderickx, 2008). Thus, a promotion has equal

advantages for both the employee and the organisation, as it saves the cost of new hires

and promoted employees exhibit higher affective commitment (Kondratuk, Hausdorf,

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Korabik, & Rosin, 2004). This is the reason that organisations have developed

programmes to manage their talented workforce and prepare them for promotion to

higher level jobs within the organisation (Rothwell, 2010). Employee perception of

promotion has a significant impact on employee work behaviour and attitudes (Webster

& Beehr, 2013). The employees are motivated to display OCB in exchange for desirable

outcomes, including organisational rewards such as promotion (Hui, Lam, & Law,

2000). Therefore, it is important to understand how OCB is related to employees

performance. For example, employees may exhibit OCB for different reasons such as

performing OCB for formal rewards (e.g. a promotion), displaying OCB as a

psychological process that recognises the link between OCB and promotion, and

demonstrating OCB in response to gaining a promotion (Hui et al., 2000). Hence

managers should consider OCBs when offering promotions to employees and

employees should also appreciate the role of OCB in career advancement within the

organisation (Hui et al., 2000).

2.10.12 Organisational Citizenship Behaviour, National Culture and

Organisational Culture

Globalisation and diversity has brought more challenges for managers in supervising

employees from different cultural backgrounds, norms and traditions. Cross-cultural

management has remained an important subject matter in the broader management

studies considering national culture and management practices within the organisation.

The most well known work in this area is that of Hofstede (2005) who provided the

base for many cross-cultural studies and suggested that cultures displayed differing

perspectives in a number of dimensions such as power distance, individualism,

uncertainty avoidance and masculinity. These dimensions can help in determining the

119

differential effects of cultural dimensions and their impact on work outcomes (Testa,

2009).

Research into OCB and culture such as that of Hui, Lee, and Rousseau (2004) suggests

that OCBs differ across the employees of different nationalities. In examining the

relationship between OCB and national context they found that ‘nationality serves as a

proxy for culture’. This illustrates the assumption that frequency of OCB could be

enhanced with regard to its cultural dimensions (Testa, 2009). For example if the

cultural dimension, ‘institutional collectivism’ is relevant to OCB (Javidan & House,

2001), employees from a collectivist background will focus more on interpersonal

helping and harmony, and show a higher level of OCB than those from individualistic

oriented cultures (Aycan et al., 2007; Moorman & Blakely, 1995; Ueda, 2011).

Furthermore, a culture is regarded as the accumulation of shared norms, traditions,

meanings and beliefs of the individual of one society which is passed on across

generations and as a generalization cultural boundary is supposed to match with the

national boundary (Stohl & Cheney, 2001).

Progress has been made in understanding the antecedents that motivate organisational

behaviour and identifying antecedents which motivate employees to go beyond their

formal job roles in a certain cultural context with widespread belief that OCBs improve

the effectiveness of organisations (Mayfield & Taber, 2010; Organ et al., 2006).

Communication between employee and organisation, appropriateness of time and place

for gaining useful information and also the nature of information within the organisation

are all impacted by the role of national culture. Its strong influence and meaningful

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effects on organisations eventually impacts on prosocial behaviours such as OCBs

(Rezaeian, Tehrani, & Foroushani, 2013).

Organisational effectiveness depends on individual behaviour exhibited beyond the role

requirements for organisational functioning and accomplishing objectives (DiPaola &

da Costa Neves, 2009). Individual cultural behaviours are constantly being reinforced

within the societal context (Testa, 2009). Cultural influence on organisation behaviour,

for example organisational characteristics perceived as positive and meaningful by some

people, may not be perceived positively by individuals from other cultures (Rezaeian et

al., 2013). Both organisational and individual behaviours are affected by organisational

culture through its various dimensions for example it affects job challenges and

turnover intentions (Carmeli, 2005; Podsakoff et al., 2009). Therefore, it is necessary to

take account of varying dimensions of organisational culture as a cultural force, for

generating commitment and enhancing overall organisational effectiveness (Lee & Yu,

2004; Sharoni et al., 2012). The argument that employees from collectivist background

focus more on interpersonal helping, harmony and show a higher level of OCB than

those from individualistic oriented cultures implies that those societies that are low in

‘institutional collectivism’, such as Pakistan, will display less OCB than those of

‘institutional collectivism’ societies (Aycan et al., 2007; Moorman & Blakely, 1995;

Ueda, 2011).

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The focus of the study is on three HRM practices (reward management systems,

promotion practices, performance appraisal systems) which have been grouped and

labelled as HRMP. The extant literature related to the relationships between the

constructs of the study, presented above, suggests the testing of the following

hypotheses:

Hypothesis (H1): The human resource management practices (RMS, PP, & PAS) are

positively influenced by the national culture.

Hypothesis (H2): The human resource management practices (RMS, PP, & PAS) are

positively influenced by the organisational culture.

Hypothesis (H3): The human resource management practices (RMS, PP, & PAS) have

positive influence on organisational citizenship behaviour.

Hypothesis (H4): National culture has a positive influence on organisational citizenship

behaviour.

Hypothesis (H5): There is a positive relationship between national culture and

organisational culture.

Hypothesis (H6): Organisational culture has a positive influence on organisational

citizenship behaviour.

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2.11 Overall Theoretical Model

Hypothesis (H7): The human resource management practices (RMS, PP, & PAS) have

an influence on organisational citizenship behavior mediated by national culture and


The reviewed literature provides the basis for developing a model to extend the

knowledge regarding human resource management practices (reward management system,

promotion practices and performance appraisal system) and to measure the national and

organisational cultural factors that influence organisational citizenship behaviour (OCB) in

the context of university employees of a developing economy. Using the findings of

literature reviewed and presented in this chapter, the overall theoretical model of this

research is presented in Figure 2.2.

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Figure 2.2 Overall Theoretical Model

Reward

Management

System

Organisational

Citizenship

Behaviour

Organisational

Culture

National Culture

H1

H2

H6

H3

H4

H5

HRMP

Ha

Hb

Hc

Hd

He

Hf

Promotion

practices

Performance

Appraisal

System

H7

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2.12 Conclusion

This chapter presented a review of literature related to the constructs adopted in this

study. Firstly, to develop a strong theoretical basis regarding HRMP, this chapter

provides an overview of theories and models that have been used to understand and

investigate HRMP. Secondly, this chapter highlights the importance of national culture

and organisational culture in the model predicting organisational citizenship behaviour.

In doing so, the theoretical foundations of the dimensions measuring individual

constructs were reviewed. The literature considered and discussed past studies related to

the relationships between the four constructs, namely, HRMP, NC, OC, and OCB.

Finally, a proposed conceptual framework based on the review was then compiled and

presented.

The next chapter presents a detailed discussion of the research methodology and design

of this study.

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Chapter Three

Research Methodology and Design


This chapter describes the mix method research approach used for data collection in this

study. It outlines the population of the study, data collection procedure, and statistical

techniques that were used. The process of data analysis for the final conceptual model

using Structured Equation Modelling (SEM) and Analysis of Moment Structures

(AMOS) software is outlined. Finally, a discussion of the strategy for analyzing the

measurement models is followed by the conclusion of this chapter.

3.2 Research Approach

Research is considered as an academic activity or as a movement from the known to the

unknown; it is actually a voyage of discovery. It is thus an original contribution to the

existing knowledge through a systematic method of finding a solution to the research

problem (Kothari, 2011, p. 1). Research methodology is defined as a systematic

approach or a procedure of studying a research phenomenon (Kothari, 2011). The

selection of research design depends on the theoretical and methodological

considerations for data collection and analysis, and selecting the most appropriate

methodology to carry out the intended purpose of the research project. This is extremely

important in the social sciences because choosing the research design and conducting

research in different competitive environments can confuse the researcher (Becker &

Gerhart, 1996).

126

Making decisions regarding methods and determining strategies for any particular

research depends on the answer to various questions. For example; the purpose of the

information and its use, what kind of information is needed, availability of resources for

conducting the evaluation and finally selection of appropriate methods (Patton, 1990).

Cronbach (1982) suggested that there are no rigid rules and no recipe or formula for

data collection methods. Therefore, a careful selection of the proper data collection

method is essential to ensure that appropriate data is collected. Developing an

evaluation is as much art as science. “Developing an evaluation is an exercise of

dramatic imagination” (Cronbach, 1982, p. 239).

There are two main approaches to research, the quantitative approach and the qualitative

approach, both these methods have advantages and disadvantages; neither of them is

wrong or right but each may be more or less useful for specific research purposes

(Kothari, 2011). The choice of a particular method depends on the nature of the research

and objectives of the study, which determine the selection of the research methods i.e.

qualitative, quantitative or mixed methodology (Kothari, 2011; Silverman, 2000).

Recently, mixed methods research has become more widely accepted in the field of

evaluation research. This approach has acquired strong support in several other fields

(Bryman, 2006; Creswell, 2003; Pawson & Tilley, 1997; Tashakkori & Teddlie, 2010).

Mixed methods research provides a sense of the rigorousness of the research and can be

helpful in clarifying the researchers’ objectives (Bryman, 2006). Combined use of

quantitative and qualitative methods is useful for versatility of the research design and

provides a limitless array of data collection and analysis techniques (Sandelowski,

127

2000). ‘Mixed-method research is a dynamic option for expanding the scope and

improving the analytic power of studies’ (Sandelowski, 2000, p. 254).

Considering the reasons for combining quantitative and qualitative approaches to data

collection, this study focused on the administration of a survey questionnaire to

administrative employees and conducted semi-structured interviews with senior

management of the university. The basic aim of mixed method research was to combine

these two research methods in a way that considers the strengths and weaknesses of

each method (Johnson & Turner, 2003).

This chapter is based on epistemological and ontological considerations and discusses

the methodological strategies (qualitative and quantitative). It also discusses the data

collection procedures, data analysis tools and criterions, sample selection, and

development of the questionnaire. Given the nature and objectives of this study, a mixed

method qualitative and quantitative research approach was adopted. The data from the

questionnaire were collected first from administrative employees and then the

interviews with management/ authority were conducted because the data collected

through the questionnaires provided information or issues to be raised with the

interview participants (management of university). This approach was chosen because it

was deemed the most appropriate means to gather the data to achieve the objectives of

the study: and added additional depth and richness to the data, providing, supporting

and complementary information. This permitted the use of triangulation which further

enhanced the value of the study. The research method utilized is described in two

sections: first the quantitative method is discussed, and then the qualitative method is

examined.

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3.2.1 Quantitative Approach

The quantitative approach is based on the measurement of the quantity or number and is

used to describe the quantity of data or information (Kothari, 2011). This method is

defined as ‘the systematic communication content to categories using statistical methods

to test hypotheses’ and involves a strict measurement of objectives (Riff, Lacy, & Fico,

2014, p. 3). In this study, the quantitative research approach was employed to test

specific hypotheses and explain the relationships between the variables. Survey research

is the most appropriate quantitative method of research because it provides a broad

coverage of the range of situations and is a quick, economical and efficient means of

gathering information (Easterby-Smith, Thorpe, & Lowe, 1991; Zikmund, 2003). There

are three main characteristics of conducting research surveys (1) to produce quantitative

descriptions of the research populations with standardized information; (2) to collect

information by asking predefined questions; (3) to generalize information to the

population as a fraction of the sample (Pinsonneault & Kraemer, 1993, p. 78).

Considering the characteristics of the quantitative research survey method, and given

the aims and objectives of this research, as described above in section 3.2, the present

study has employed the quantitative approach for addressing the objectives of the study.

This approach was chosen because it provided the most appropriate means to gather the

data and this research method was deemed to achieve the aims and objectives of this

study.

3.2.2 Qualitative Approach

Qualitative methods have a well established history in the field of business and

management being applied in a wide range of areas from the organisational analysis to

the traditional areas of accounting and finance (Cassell, Symon, Buehring, & Johnson,

129

2006). Qualitative methods provide rich insights into the issues (Boje, 2001; Prasad &

Prasad, 2002), and is applicable to phenomenon that relates to quality or kind (Kothari,

2011). The traditional form of qualitative research has adopted explicit and implicit

understanding of data, positivist and post-positivist and is termed as foundationalism

(Denzin & Lincoln, 2011). Qualitative research enables objectivity and generalisability

of data, reduces data systematically, and elicits and quantifies predetermined categories

of information with a variety of techniques (Amis & Silk, 2007, p. 4) Qualitative

research is not only a methodological exercise but an understanding of the ‘ontological’

and ‘epistemological’ bases of the research (Amis & Silk, 2007). Consequently, given

the aims and objectives of this research and considering the aspects of the qualitative

research method, the present study has employed the qualitative approach for examining the

objectives of the study.

3.3 Population of the Study

Bryman and Bell (2007, p. 182) define the population as “the universe of units from

which the sample is to be selected’ such as a group of people or communities that share

the same characteristics. Sproull (2002) argues that it is very difficult to survey the

whole population for just one study. The population for this study included employees

working in the administration of five public sector universities in the province of Sindh,

Pakistan. A questionnaire was distributed among the university employees that included

officer grade 17 to 19 (middle management) and staff grade 11 to 16 (clerical/ lower

staff).

To supplement the quantitative study a qualitative element was added to provide in-

depth responses for this study with eight higher officials being interviewed. Five public

130

sector universities consented to participate in this research and those who agreed to

interviews included registrars, pro vice-chancellors and vice chancellors. In most

universities there is no separate HR section and the registrar’s office looks after all HR

activities. Only 3 of the 8 universities in Sindh province have separate HR sections.

3.4 Data Collection Methods

The study was based on mixed methodology using survey research and semi-structured

interviews. In order to address the research objective, firstly, data was gathered using a

structured questionnaire, which enabled the hypotheses testing and relationship between

variables to be identified. The confidentiality of the participants was assured and no

name or signature was required on the questionnaire. A copy of a letter asking for

access permission was sent to the eight universities in Pakistan, explaining the

objectives of the study and encouraging their cooperation in the research by filling out

the questionnaire; however, only five universities approved the data collection process.

Secondly, the semi-structured interviews were conducted with the management of the

universities who consented to participate in the research. The researcher’s personal

contacts within the participating universities provided permission to contact officials at

their universities and the nature of the study encouraged participants to take part. The

interviewees were approached by telephone and personal visits to explain the research,

to seek their willingness to participate, and make an interview time convenient to them.

Those who agreed to an interview were offered the interview guide in advance, but all

declined. Once agreed interview times were arranged the researcher provided each

interviewee with an information sheet detailing the purpose of the research (see

Appendix A) and other details regarding the interview such as time requirements and

131

language of the interview. The consent form was signed at the beginning of the

interview by each interviewee (see Appendix B). Interviews were conducted

individually and in-person using English, since English is commonly employed at

workplaces in Pakistan. At this time permission was sought to record the interview and

all consented. These were later transcribed by the interviewer. All identifiers (i.e. names

of individuals, locations and names of institutions) were removed from the transcripts

prior to analysis. At the request of the interviewees all interviews were conducted in the

participants’ offices. The interviews lasted approximately 30 min, some interviewees

elaborated in detail and these interviews lasted up to one hour. During the interviews

interviewees held the conversational floor for around 90% of the time.

3.4.1 Quantitative: Data Collection

3.4.1.1 Unit of Analysis

A unit of study can be classified as what is to be studied and whom. One of the basic

decisions is selecting the unit of analysis for the research. Unit of analysis refers to a

number of objects of study such as a person, program or organisation (Creswell, 2003;

Graneheim & Lundman, 2004). The participants involved in this study were all

employees working in the administration in public sector universities of Pakistan. In

order to collect reliable and valid data for this study and to avoid any forced

participation, all participants were informed in advance that their participation was

voluntary and anonymous. Survey questionnaires were distributed to those who showed

interest and willing participation to contribute to the research.

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3.4.1.2 Quantitative Method

Sekaran (2000) argued that a methodology for data collection is a basic component of

any research. There are many research techniques for data collection. This study was

conducted using the survey method because survey research is an appropriate method of

research for quick, efficient, low-cost and accurate information (Zikmund, 2003).

Further, survey research is appropriate for conducting quantitative research with

standardized information such as hypothesis and relationship between variables,

characters of individuals, groups and organisations, and a pre-defined structured

instrument through a sample of population (Pinsonneault & Kraemer, 1993). Therefore,

the survey method was adopted as the preferred tool for answering the objectives of the

present study. In the survey method some form of direct participation is important

during the collection of data, such as filling out a questionnaire (Zikmund, 2003). There

are two phases of data collection, pretesting usually referred as to pilot study and the

main study.

3.4.1.3 Pilot Study

Zikmund (2003) identified that ‘Pretesting’ involves using a small sample to determine

the appropriateness of the data collection instrument for the main study. Hence

pretesting provides an opportunity to check the questionnaire’s wording or sequence,

length and clarity, it helps to minimize errors and to check its feasibility in terms of

reliability and validity to the design of the survey instrument before conducting the

main study (Zikmund, 2003).

A pilot study was conducted to test the validity of the questions in the questionnaires

before conducting the main study. Thirty questionnaires were administered to the

133

employees of a university. A written consent was signed by the participants who

volunteered to participate in the research, after providing them with an information

letter about the questionnaire and the purpose of the research. Initially two days were

allowed for filling out the questionnaire. After a reminder 100% response rate was

received for the pilot study. The collection of the questionnaire was made by the

researcher with words of thanks and appreciation to the participants. Although it was a

pilot study all completed questionnaires were received. However, some reluctance of

employees to complete the questionnaire was noticed. This was addressed by a briefing

on the purpose of the questionnaire and their contribution to the research after which

participants completed the questionnaire willingly. Another problem of mistrust of the

respondents arose in that some of the respondents seemed concerned about

confidentiality and having their names or positions reported to higher authority if they

made any negative comments about university HR practices in the questionnaire. The

trust of the respondent was gained by assuring them that it was not necessary to disclose

their name, reinforcing the purpose of the study and their voluntarily participation in the

research (see Appendix C, questionnaire consent form).

134

3.4.1.4 The Cover Letter

According to Adams, Khan, and Raeside (2014), success of the survey research is

dependent on the response rate. To ensure a high response rate it is important to make

the survey interesting to the respondent through a brief covering letter. The covering

letter helps to motivate the respondent’s participation in the research and increase the

response rate (Adams et al., 2014). In this research, two covering letters were prepared

one for the survey participants and the second for the participants who agreed to be

interviewed for this research. The covering letters were written on Charles Sturt

University letterhead following the recommended guidelines, explaining the research

topic, purpose of the research, significance of their participation in the research,

ensuring confidentiality of information and anonymity of the respondent. The covering

letter/information sheet mentioned ethical approval for this study, appreciation and

thanks to the participants followed by the researcher’s contact details (e.g. email address

and phone number) should they wish to query or discuss further details about the study

(see Appendix A,B and C).

3.4.1.5 The Sampling Design

Bryman and Bell (2007) define ‘sample’ as a selected segment of the population, chosen

to draw conclusions which can be generalisable to the targeted population. A

questionnaire was distributed among the university employees that included officers

holding basic pay scales (BPS) 17 to 22 (top/ middle management) and staff BPS 7 to

16 (clerical/ lower staff). A total of 910 questionnaires were distributed among five

public sector universities.515 questionnaires were returned out of which 420

questionnaires were fully completed and useable for data analysis, yielding an overall

135

response rate of 46.15%. 95 questionnaires were discarded due to incomplete and

missing values. Details of the sampling can be seen in Figure 3.1.

The distribution of questionnaires was conducted utilizing personal contacts to gain

access to the universities and circulation and collection of questionnaires was made

through an individual nominated by the university authority. The researcher delivered

the questionnaires to the appropriate person (nominated by the Registrar) in the

Registrar’s office of the university, who was responsible for delivering the questionnaire

to the employees who were willing to participate in the survey. The participants were

requested to put completed questionnaires in a box which was arranged in each section

of the university

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Figure 3.1 Sampling Design: Quantitative

Research population (Pakistan)

19 universities 16 universities 17 universities 5 universities

Questionnaire were distributed in the universities

Baluchistan

Province

Khyber Pakhtoonkhuwah

Province

Sindh

Province

Punjab

Province

QUEST

110

questionnaires

SAUT

100

questionnaires

MUET

250

questionnaires

Sindh

200

questionnaires

LUHMS

250

questionnaires

Total Questionnaire 910

Returned Number of

Questionnaires

MUET 200

questionnaires

Sindh

90

questionnaires

QUEST

75

questionnaires

SAUT

55

questionnaires

LUHMS

95

questionnaires

Unit of Analysis

Total sample size 420

4

4

Sindh

75

questionnaires

QUEST

59

questionnaires

SAUT

30

questionnaires

LUHMS

80

questionnaires

MUET 176

questionnaires

137

with the permission of the authority. Later, the researcher collected the completed

questionnaires from the same contact individual.

Baker and Risley (1994, p. 483) states the unit of analysis as the social object whose

characteristics is the focus of the study. Generally, the unit of analysis can be a single

unit such as a case study and survey research, but and it may be multiple units such as

research using hierarchal data analysis (Bernard & Bernard, 2013). For this study the

sample unit is regular employees working in the public sector universities of Pakistan.

Comrey and Lee (2013) suggested that a sample size of 100 is considered as poor, 200

as fair, 300 as good, 500 as very good and 1000 as excellent. This study achieved a 420

workable sample size to carry out the analyses.

There are various categories of questionnaire design, depending on the questionnaire’s

administration and the amount of contact involved with respondents. For instance, one

type of questionnaire design is the self administered questionnaire. Self administered

questionnaires are frequently answered by participants, and these questionnaires are

delivered and returned through the post, via email or delivered and collected by hand

(Lewis, Thornhill, & Saunders, 2007). Self administered questionnaires are an

inexpensive method for both researchers and participants while providing a chance to

reach a relatively large respondent population (Zikmund, 2003). Hence considering the

advantages of the self administered questionnaire, this study used the questionnaire to

examine the general nature of HRM practices in a developing country and analysed the

underlying factor structure of the reward management system, promotion practices,

performance appraisal system, national culture, organisational culture and organisational


138

3.4.2 Qualitative: Data Collection

3.4.2.1 Unit of Analysis

After the quantitative collection of data, interviews were conducted with management of

the public sector universities of Pakistan officials who consented to participate in the

research.

3.4.2.2 Qualitative Method

Kavle (1996) described the interview as the “favoured digging tool” in social sciences.

The interview could be structured, unstructured or semi-structured (Burns, 2010; Ehigie

& Ehigie, 2005; Fontana & Frey, 2005; Marshall & Rossman, 2010; Polit & Beck,

2010). Sayrs (1998) stated that interviewing is an important methodological toolbox in

social science research. It has also been the subject of various published texts (e.g.

McCracken, 1988; Patton, 1990). In-depth interviews provide an opportunity for

repeated face to face encounters between the interviewer and interviewee which

increases understanding of informants’ experiences and situations as expressed by them

in their own words (Ehigie & Ehigie, 2005). Face to face contact allows the

development of rapport and a ‘natural’ interaction for generating rich qualitative data

(Shuy, 2003).

This study adopted the standardized open-ended approach given the advantages

suggested by Hennink, Hutter, and Bailey (2011), Khilji (2004) and Miles and

Huberman (1994) that open ended questions provide an opportunity for probing, allows

interviewees to share information in detail, and gives an opportunity to understand the

interviewee in their context and point of view. In-depth interviews were used to explore

139

in detail the latent attitudes and feelings of respondents (Ehigie & Ehigie, 2005). Whilst

these can be conducted in person or through telephone and email, this study chose to

interview in person. As mentioned by Ehigie and Ehigie (2005) face to face interviews

consider interviewee’s own discussions, expressions and emotions.

3.4.2.3 Interview Guidelines

Many authors make a distinction between different question types such as, open-ended

and close-ended (Briggs, 1986, 2003; Kavle, 1996; Silverman, 2011). An open ended

question allows interviewees to talk for long stretches with limited control of the

interviewer on response construction. Hence, such question design is typical in

qualitative interviewing (Grindsted, 2005). This study used semi‐structured interviews

with open-ended questions because they were the most practical method and widely

used in qualitative research for obtaining adequate and valid information (Grbich, 2012).

Considering the advantages of in-depth interviews and given the research objectives; in-

depth interviews were deemed the most appropriate method for data collection.

According to Ramirez-Rubio et al. (2013) open-ended questions asked in qualitative

studies are designed to discover the opinion, beliefs, experience and behaviour of the

interviewee without any options for prescribing responses or leading interviewees to a

particular answer. In this study the interview guide was developed with the aim of

getting information and opinions from interviewees about the strengths and weaknesses

of human resource management practices in the university based on their experience. A

set of questions were arranged in order to ask each respondent the same question with

flexibility in probing depending on the nature of the interview and interviewer skills.

140

The basic structure of the interview was followed so that all key topics were addressed.

Initial questions were focused on determining their general understanding of Human

resource management (HRM) practices. For each topic focused on in this research a

broad question was asked to establish the respondents overall perception of the HR

functions and followed up with specific questions to elicit further detail or support for

their opinion. Questions asked in the interview addressed the following topics: 1)

human resource management practices; 2) reward management system; 3) promotion

practices; 4) performance appraisals systems; 5) organisational culture; 6) national

culture; and 7) organisational citizenship behaviour. Interviews included a series of

follow-up questions and some of the questions were probed with the intention to draw

out additional information on these topics, and were used in response to the answers

received from the interviewees (see Appendix D for list of interview questions and

Appendix E for interview protocol).

3.4.2.4 The Sampling Design

There are no rules for sample size in qualitative research. The sample is dependent on

the type of information sought, the purpose of the inquiry, the degree of credibility

needed and what can be acquired with available resources (Patton, 1990). Sampling

involves selecting a portion of a target population or universe as representative of the

whole population or universe (Kerlinger, 1986).

Five public sector universities consented to participate in this research (see Table 3.1).

Each interview was assigned a number, based on the order in which interviews took

place. These numbers have been used to indicate which quotes/responses were provided

by the different participants in Chapter five.

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Table 3.1 Interview Participants

University

No. of

Interviewees

Interviewee Position

1 3

1 Registrar

2 Pro-Vice Chancellor

7 Vice chancellor

2 2

3 Registrar

5 Vice Chancellor

3 1 4 Registrar

4 1 6 Vice Chancellor

5 1 8 Pro-Vice Chancellor

Total 8 8

3.5 Research Instrument

The selection of the correct instrument is an essential activity. It is important to have an

accurate instrument for the data collection. To measure construct validity and reliability

requires a capable instrument (Zikmund, 2003). Research instruments can be used in

combination to fulfill the objectives of the study (Sandelowski, 2000). Instrument

typologies provide descriptions of the research, guidance to purposeful sampling and

elicitation of devices to both qualitative and quantitative research. Research instruments

direct researchers more precisely to the kinds of participants and the information to

obtain (Sandelowski, 2000). Since, this study has employed mixed methodology for

gathering data; the research instruments chosen for this research were questionnaire

surveys and semi-structured interviews which are discussed in detail as follows:

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3.5.1 Survey

Establishing an instrument for collection of data in achieving research objectives and

selection of the relevant, accurate and correct instrument is a complex process

(Zikmund, 2003). Sekaran (2000) discussed the capacity of the instrument to answer the

research question’s validity and reliability. This study followed Sekaran’s (2000)

procedures to develop an appropriate instrument, mainly emphasizing the instrument

content development, item wording and language and layout of the instrument. Survey

research is an appropriate tool to conduct quantitative research for obtaining

standardized data to further explore the relationships between the hypothesis and the

variables through a sample population (Pinsonneault and Kraemer, 1993).

Previously the researcher was working in one of the universities so access was gained

by telephoning, emailing and making personal visits in order to distribute the

questionnaires. The questionnaire was administered personally by the researcher and

access to the universities was gained with the help of personal contacts. In this study the

questionnaire was divided into two parts. Part A, demographic variables comprising six

questions; age, gender, education level of respondent, grade of respondent, length of

service and university name. This was placed at the beginning of the questionnaire on

the recommendations of Sekaran (2000) who suggests that, in designing the

questionnaire, the personal information should be asked at the start or at the end of the

survey instrument. Part B, comprises 132 questions under the sections of reward

management system, promotion practices, performance appraisal system, national

culture, organisational culture and organisational citizenship behaviour which were

measured using a five point Likert scale e.g. very dissatisfied, not satisfied, neutral,

satisfied and very satisfied (see Appendix F).

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3.5.2 Survey Language

The questionnaire wording, types and forms play a vital role in keeping respondents

interested until the end of the questionnaire (Sekaran, 2000). Zikmund (2003) argued

that there are two ways of phrasing questions i.e. open-ended and closed-ended. Closed-

ended questions are preferable for quantitative research as they are easier to respond to

in less time as well as easy for coding and tabulating purposes. This was the reason this

study chose close-ended questions for the quantitative analysis. Since English is

commonly used in workplaces in Pakistan the questionnaire was distributed in English.

The questionnaire was written in simple and easy to understand language related to

reward management systems, promotion practices, performance appraisal system,

national culture, organisational culture and organisational citizenship behaviour in

public sector universities of Pakistan.

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3.5.3 Response Rate

The data was collected from February to May 2013. A total of 910 survey

questionnaires were distributed into five public sector universities in Pakistan. 515

questionnaires were returned; a return rate of 56.5% (n=515), from which (n=95) 10.4%

questionnaires were discarded due to incomplete sections and a large number of missing

values. Finally, 46.15% (n=420) completed questionnaires were used for the final

analysis. A response rate of 46% is considered acceptable for this type of study.

3.5.4 Semi-Structured Interview

In the social sciences, semi-structured interviews are widely used to gain insight into

how people attribute meaning to their worlds in their social circle (Grindsted, 2005).

Semi-structured interviews provide the opportunity to have face to face interviews

which provide ‘social cues’ such as voice and body language of the interviewee. These

aspects ‘help the interviewer to get a lot of extra information that can be added to the

verbal answer of the interviewee’ (Opdenakker, 2006, p. 3). Punch (2009) asserted that

accurately constructed and conducted interviews are a practical method of data

collection, considering interviewees’ knowledge, experiences, reactions, and

interpretations. A semi-structured, in-depth interview permits versatility and is a

successful method for obtaining particular and relevant information (DiCicco‐Bloom &

Crabtree, 2006; Fontana & Frey, 2000; Rospenda, Richman, & Nawyn, 1998). In semi-

structured interviews questions are planned in advance, using open-ended questions

(Marshall & Rossman, 2010). Semi-structured open-ended interviews unveil concealed

issues (Fontana & Frey, 2000) and help in the exploration of issues, minimize

inconsistencies and assist the interviewer to better understand information (Kinoshita et

al., 2012). Opdenakker (2006) also notes less delay between question and answer and a

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quick reaction of both parties to what the other says or does. This helps to steer the

conversation, and provides an opportunity for synchronised communication in time and

place. An interview guide can be prepared in advance as it encourages the interviewer to

cover all relevant information and allows deviation. In this way, the interview can be

semi-structured (Ehigie & Ehigie, 2005).

Given the scope and purpose of the research project, the researcher chose to employ

semi‐structured interviews with officials working in authoritative positions such as

Vice-Chancellors, Pro Vice-Chancellors and Registrars in the public sector universities.

The decision to interview these officials was based on the premise that information

could be obtained in detail using open ended questions to elicit the opportunity for

probing which could not have been achieved if a questionnaire using the Likert scale

was used. Another reason for interviewing them was to compare and contrast the

information obtained from the employees and higher officials regarding the HRM

practices and their impact on employee performance. Semi-structured interviews also

allowed for the gathering of immediate information without the need for any reminders,

which would be viewed as impolitic and culturally inappropriate given the senior

positions held by the interviewees.

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3.6 Analytical Procedure

The data collected through the questionnaires was analyzed by using descriptive

statistics techniques. The demographic frequency, factor analysis, regression analysis

and multiple analyses of variance were used to determine the strength of the relationship

between the dependent variable and independent variables. The regression pathways

were confirmed by structural equation modelling (SEM). For this study reward

management system, promotion practices and performance appraisal system were

considered as dependent variables and organisational citizenship behaviour was tested

as the independent variable through national culture and organisational culture as

mediating variables using “SPSS 19” and SEM.

3.6.1 Data Entry

It is recommended by Adams et al. (2014) that responses should be entered into a

spreadsheet with particular headings which identify each question or sub-question. In

this study, the data collected through questionnaires and interviews were first coded and

transcribed respectively. The cleaned data were then entered in SPSS 19.0 and

Microsoft Excel. Finally the data was thoroughly checked for proper entry, corrections

were made for double digit entry or any other typographical error.

3.6.2 Demographic Variables

The demographic variables age, gender and education were considered in this research.

Age has been categorized in four groups, with 1 = 20-29 years, 2= 30-40 years, 3 = 41-

50 years and 4 = 51-60 years. Gender was grouped with two categories, with 1

distinguishing female and 2 distinguishing male, and education was grouped with five

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categories, with 1 = Diploma, 2 = Undergraduate, 3 = Postgraduate, 4 = PhD, and 5 =

Other qualification.

3.6.3 Organisational Variables

The organisational variables grade and length of service were considered in this

research. Grade has been categorized into four groups, with 1 = (7-14), 2 = (15-17), 3 =

(18-19), 4 = (20-22). Length of service of employee was measured in years and divided

into five groups, 1 = (0-11) months, 2 = (1-10) years, 3 = (11-20) years, 4 = (21-30)

years, and 5 = (31-40) years.

3.6.4 Constructs of the Study

Six constructs were considered in this research: reward management system, promotion

practices, performance appraisal system, national culture, organisational culture and

organisational citizenship behaviour. These constructs were ranked according to five

categories, with 1 = (very dissatisfied) 2 = (not satisfied), 3 = (neutral), 4 = (satisfied),

and 5 = (very satisfied).

3.7 Measures

Reliable and validated measures that have been used in past research were identified for

each of the variables in this study.

3.7.1 Reward Management System

The thirteen items developed by Husin et al. (2012) to measure reward management

systems were used. In this study the response was sought using a five point Likert scale

(endpoints: 1 = very dissatisfied, 5 = very satisfied), and proved reliable having alpha

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ranges between 0.76 to 0.87. This scale was selected as it had already been used in a

developing country whose context seemed comparable to Pakistan: for instance an

Islamic country with its own national language and the continuing British influence

reflected in the use of the English language, the transportation system (trains),

educational system and legislative system. Results of this study concluded that

managing human resources through the various HRM practices was critical for the

success of any organisation, particularly service organisations. Thus it was decided to

use this scale as it was focused on the objectives of this study.

3.7.2 Promotion Practices

For promotion practices the questionnaire developed in an earlier study by Krivokapic-

Skoko et al. (2009) was used, and contained eight items. The response was sought on a

five point Likert scale (endpoints: 1 = very dissatisfied, 5 = very satisfied). The scale’s

reliability was 0.89. This instrument was chosen as the basis of the current questionnaire

due to focus of the questions and its successful use in the university context, which was

appropriate for the objectives of this study.

3.7.3 Performance Appraisal System

An earlier study developed by Whiting, Kline, and Sulsky (2008), using forty-six items

to measure performance appraisal was adopted for this study with 0.84 reliability. The

response was sought on a five point Likert scale (anchors: 1 = very dissatisfied, 5 = very

satisfied). This instrument was chosen for inclusion in the current questionnaire due to

the focus of the questions to assess employee performance appraisal and its ability to

predict employee attitude about their performance appraisal systems in the

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organisational context. Therefore it was decided to use this scale as it was focused and

related to the objectives of this study.

3.7.4 National Culture

National culture was measured by seventeen items developed by Keillor and Hult

(1999). Alphas ranges 0.77 and above. The response was sought on a five point Likert

scale (anchors: 1 = very dissatisfied, 5 = very satisfied). These were chosen for

inclusion in the current questionnaire due to focus of the questions and its use in a five-

country study of national identity examining differences across nations and culture.

Therefore it was decided to use this scale as it was focused and related to the objectives

of this study.

3.7.5 Organisational Culture

For the organisational culture variable questions were adopted from an earlier study by

Cameron (2004), and consisted of twenty-four items. The response was sought on a five

point Likert scale (endpoints: 1 = very dissatisfied, 5 = very satisfied). This instrument

was chosen as the basis of the current questionnaire due to the nature of the questions

which focused on the process of changing organisational culture. It was decided to use

this scale to also examine the relationship between HR practices and organisational

culture.

3.7.6 Organisational Citizenship Behaviour

Organisational Citizenship Behaviour: was measured by twenty-four items developed

by (Podsakoff et al., 1990). All alpha ranges were acceptable. The response was

required on five point Likert scales (endpoints: 1 = strongly disagree, 5 = strongly

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agree). This instrument was selected due to the focus of the questions which were based

on transformational behaviours and their effects on trust, satisfaction and organisational

citizenship behaviour. This scale was chosen to examine the behaviours impacting

individual performance in the organisation.

3.8 Data Analysis Plan

This section outlines the data analysis plans (quantitative and qualitative) that have been

used in this study.

3.8.1 Data Analysis Plan: Quantitative

The analytic perspective has important implications for data collection. These

standpoints lead to methodological commitments for data collection. There are some

clear implications for identifying analytic plans (Silverman, 2010). Thus, the analysis of

this study is divided into two stages, first, preliminary data analysis and second,

evaluation of the structural model. In the first stage the data was analysed using

descriptive statistics such as mean values and standard deviations. All the tasks included

in this stage e.g. coding, editing, checking missing values, data normality testing,

reliability of data and factor analysis were run using SPSS 19.0. In the second stage

Analysis of Moment Structures (AMOS version 21) was used for Structural Equation

Modelling (SEM).

3.8.1.1 Data Coding and Editing

According to Pallant (2007) the main purpose of the coding is labelling the variables of

the study and assigning the numbers to the responses. In this study, a widely accepted

and used SPSS 19.0 software package was employed for the purpose of coding and

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editing the quantitative data collected from the questionnaires. SPSS 19.0 was run to

screen the data, detecting missing or incomplete values, determining normality of data

i.e. using kurtosis and skewness statistics, and to perform descriptive statistics such as

mean values, standard deviations and frequencies.

3.8.1.2 Data Validation

Data validation is a process of quality assurance that confirms the accuracy of data

during the study. Data validation involves three stages: prior data entry, during data

entry and post data entry (Taylor & Bogdan, 1984). Data quality assurance needs to be

addressed and data collected for the research must be validated for its wide acceptance

(Dickinson, Zuckerberg, & Bonter, 2010). For this study, to assess the validity and

reliability of the data, exploratory factor analysis (EFA) using SPSS 19.0, confirmatory

factor analysis (CFA) and structural equation modelling (SEM) was used.

3.8.1.3 Factor Analyses

According to Leeflang and Wittink (2000) factor analysis is a widely used technique to

investigate any highly correlated variables with a structure of overlapping variation between

predictors. This well-accepted tool is employed as a means of finding underlying

dimensions in variable sets and has been extensively used in the literature (e.g. Gorsuch,

1983; Hair, Black, Babin, Anderson, & Tatham, 2006; Hofstede, 1980a; Jolliffe, 1986;

Rummel, 1970). Therefore, a factor analysis was run to confirm the scale selected for the

present study and it was supported by the data. Recommendations of Hair, Anderson,

Tatham, and William (1998) were followed for the purpose of this study with factor

loadings equal to 0.40 or greater considered practically significant.

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Factor analysis is the best method to understand the essential structure about a particular

theory and its variables in analysis (Tabachnick & Fidell, 2007). Generally, the factor

analysis is used to reduce the information included in a number of measuring items into

smaller factors (Gorsuch, 1983). Factor analysis helps in specifying the unit of analysis

and identifies the relationship between variables and respondents (Hair et al., 2006).

Therefore, factor analysis was used to study the possible factors which were grouped

together in a meaningful way (Tabachnick & Fidell, 2007). As to the psychometric

validation, Principal Component Analysis (PCA) was performed to examine dimensions

of the components. PCA can be used in many ways to summarize a large number of

variables into a smaller number of linear combinations that accounts for variability in

the pattern of correlations (Pallant, 2013). Pallant (2013) and Tabachnick and Fidell

(2007) argued that PCA is the better choice for the purpose of empirical summary of the

data.

3.8.1.4 Structural Equation Modelling

Structural Equation Modelling (SEM) is a collection of statistical techniques which

facilitate the examination of a set of relationships between multiple variables, either

continuous or discrete and either latent (construct) or observed variables (Hair et al.,

2006; Tabachnick & Fidell, 2007). SEM provides factor analysis, contribution of

dependent and independent constructs and multiple regressions to assess model fit to the

data (Tabachnick & Fidell, 2007). It is a ‘procedure for accommodating measurement

error directly in the estimation of a series of dependence relationships. It is the best

multivariate procedure for testing both the construct validity and theoretical

relationships among multiple variables’ (Hair, William, Barry, & Rolph, 2010, p. 627).

SEM is given many names: casual analysis, casual modelling, covariance structure

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analysis, confirmatory factor analysis and latent variable analysis (Hair et al., 2010;

Tabachnick & Fidell, 2007). Thus, SEM has become a popular multivariate approach

and has been used in various disciplines to address numerous research problems (Hair et

al., 2010). The SEM technique contains two inter-related models: (1) the measurement

model, and (2) the structural model. Both models can be estimated through second

generation data analysing techniques such as variance-based modelling Partial Least

Squares (PLS) and covariance-based modelling, Linear Structural Relations (LISREL),

and Analysis of Moment Structures (AMOS). In addition, SEM enables the researcher

to examine both measurement modelling and structural modelling by testing the

relationships among multiple variables (Gefen, Straub, & Boudreau, 2000; Tabachnick

& Fidell, 2001). According to Hair et al. (2010) there are six stages in SEM: stage one,

defining the constructs, stage two, specifying the measurement model, stage three,

adequacy of the sample size, stage four, measurement model validity, stage five,

specifying structural model, and stage six structural model validity. SEM analyse

techniques involve testing both measurement theory such as construct representation

and structural theory such as construct interrelationships.

3.8.1.5 Justification for Structural Equation Modelling Use

SEM is a versatile statistical modelling tool. It has a number of advantages, such as

estimation capacities of error between variables (Lei & Wu, 2007). SEM determines the

significant paths among variables based on the proposed model and hypotheses (Isa,

Loke, Smith, Papageorgiou, & Hunter, 2013). SEM is used for testing hypotheses,

testing model appropriateness, modification of existing models and testing a number of

related models (Tabachnick & Fidell, 2007, p. 679). In addition this tool can be used

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with different Software packages including Analysis of Moment Structures (AMOS),

Statistical Analysis Software (SAS), Linear Structural Relations (LISREL) and

Structural Equation Modelling Software (EQS) (Hair et al., 2010; Tabachnick & Fidell,

2007). Therefore, structural equation modelling was most suitable for this study to

examine the multiple dependent and independent relationships given in the proposed

research model. In this study AMOS was used to examine statistical relationships

between the dependent factors such as reward management system, promotion practices,

performance appraisal system with mediating factors such as national culture,

organisational culture and organisational citizenship behaviour as the independent

variable. It is important to highlight the reasons for adopting covariance-based

modelling technique AMOS to analyse the data and the rationale behind using it in this

study; (1) it proposes a systematic mechanism for dealing with multiple and interrelated

dependence relationships simultaneously, (2) it helps in model specification, and (3) it

helps to deal with complex models (Hair et al., 2010; Tabachnick & Fidell, 2007).

Therefore, the present study has employed the AMOS technique for addressing the

objectives of the study.

3.8.2 Data Analysis Plan: Qualitative

Considering, the advantages of open-ended questions by various authors such as

Hennink et al. (2011), Khilji (2004), Ehigie and Ehigie (2005), and Miles and

Huberman (1994) this study used open-ended questions in the interview. It was decided

that a more enhanced quality of response could be obtained through the use of open-

ended questions. Therefore, face to face interviews were conducted, ranging from half

an hour to one hour, depending on the respondent willingness to share the information.

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Responses to the questions are presented under the seven sections: human resource

management practices, reward management system, promotion practices, performance

appraisal system, national culture, organisational culture and organisational citizenship

behaviour. The opinions/comments made by the interview participants have been

reviewed and summarised in the following discussion, and supported by quotations

taken from the transcripts of interviews. Each question will be presented, followed by a

summary of comments and selected quotations. In cases where two or more questions

were used to collect responses on the one issue, from different perspectives, or to seek

follow-up information, the questions have been discussed together.

3.8.2.1 Transcription

Ritchie and Spencer (2002, p. 225) define transcription as ‘transforming spoken

language into a written text. Transcription is one of the important parts of the analytic

plan. Talk is often treated as a medium for information passed from one person to

another, it is a ‘telementation view of language’ (Harris, 1981; Silverman, 2010). It is

important to determine features of talk precisely to know what actions are performed

and establish an understanding of activity between participants and analysts. For this

reason the talk was transcribed, initially as a first draft, the entire interviews were typed

including words and other features of the conversation on paper such as pauses,

interruptions, thinking modes, laughing and nodding. Then after re-transcription that

best displayed the conversation between interviewee and interviewer was prepared in

Microsoft excel. This was then used for the analysis of this study.

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3.8.2.2 Coding

In the qualitative analysis, instances are systematically identified across the data and

grouped together as a means of coding. The unit of analysis, either group or individual,

provides the basis for developing a coding system, which is then applied in the

transcription. Coding is meant to encourage conceptual development (Silverman, 2010).

Unit of analysis refers to several objects of study, for example, a person, an organisation,

or a community (Patton, 1987). Unit of analysis is also considered as interviews, diaries

or an interaction (Downe‐Wamboldt, 1992). The text that are coded or written in the

transcript, have also been considered as units of analysis (Feeley & Gottlieb, 1997). It is

difficult to take a whole interview as a unit of analysis that may be large enough or

small enough to keep in mind as a context of the meaning unit for the analysis process

(Graneheim & Lundman, 2004). Thus, a group of words or statements that relate to the

same central meaning, has been referred to as a content coding, a keyword and phrase

(Baxter, 1991). In this study interview texts were sorted into seven content areas (i.e.

human resource management practice, reward management system, promotion practices,

performance appraisal system, national culture, organisational culture and

organisational citizenship behaviour).

3.8.2.3 Themes

The next stage in qualitative data analysis is to explore what is ‘underlying’ in the data

or to distil meaning, norms, patterns orders and themes (Silverman, 2010). Themes

emerge from experiences of participants and unify ideas about the subject of the study.

Themes evolve from the conceptual codes, sub-codes and relationship codes, which tag

data that link concepts to each other (Bradley, Curry, & Devers, 2007). In this study

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interview text was sorted into twenty seven themes for answering the objectives of the

study.

3.9 Triangulation

Triangulation has been defined as the combination of multiple theories, methods and

data sources in a single study (Denzin & Lincoln, 2009) (Oppermannt, 2000). It has

been used as a metaphor to characterize several methods in measuring a single construct

(Garner, 1954; Oppermannt, 2000). There are two types of methodological triangulation

(1) within method triangulation, which includes the combination of numerous data

collection strategies for the single study to evaluate the same constructs, and (2)

between method triangulation, which incorporates both quantitative and qualitative

approaches for a particular study to measure similar variables (Denzin & Lincoln, 2009).

3.9.1 Justification for the Use of Triangulation

For the purpose of this study the use of triangulation has been necessitated by the

confirmation of analyses technique’s strengths and weaknesses, and to confirm the

validity of results and to overcome the deficiency of any one method used in this

research. As Blaikie (1991), concurs that triangulation has been useful to overcome

issues of validity, biasness of research results and surmounting methodological

insufficiency. This study has used between method triangulation to reveal the multi-

faceted nature of the study, uncover the context and consequences of the research

findings in addressing its aims and objectives. The following framework (Figure 3.2)

has been developed for the triangulation of this study.

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Figure 3.2 Triangulation

Notes: = constructs of the research (HRMP= human resource management practice, NC= national culture, OC organisational culture and OCB

organisational citizenship behaviour).

NC

OC

HRMP OCB

BB

Summing Junction Data Strategies

Triangulation

Quantitative

Data

Qualitative Data

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3.10 Ethical Considerations

Ethical considerations are an important element when conducting research in any

organisations. The clear and agreed terms and conditions for the research provide

cooperation and compliance by the respondents and allow collection of the desired

amount of data (Zikmund, 2003). In this regard there are two important attributes

concerning ethical issues: (1) the sensitivity issue related to ethics, and (2) the

commitment to abide by the set actions (Eisner & Peshkin, 1990). Ethical consideration

varies from culture to culture and from one individual to the other. Something

considered ethical in one context may be considered unethical in another context

(Busher & James, 2002). Thus an ethical decision is a trade-off whereby the researcher

needs to display “a balance between the demands placed on them as professional

scientists in the pursuit of truth, and their subjects’ rights and values potentially

threatened by the research” (Cohen, Manion, & Morrison, 2000, p. 49). In addition,

Sekaran (2000) and Cohen et al. (2000) suggested that the researcher should ensure: the

secrecy and confidentiality of the information; privacy and confidentiality of the

respondent; ensure self-respect and self-esteem of the respondent’s; appropriate

representation of the respondent information; clear representation of research purpose

and objectives; and a prior consent of the respondent (not forced) to participate,

withdraw or refrain from taking part in the research.

In this study, ethical issues were considered very rigorously to ensure the integrity of

research. In addition to Cohen et al. (2000) and Sekaran’s (2000) recommendations as

mentioned above, the guidelines of the Charles Sturt University (CSU) ethics committee

were followed during the data collection of this research. According to CSU’s ethics

guidelines, the researcher is required to submit an ethics approval form, create a

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participant information sheet and a consent form ensuring the participants of voluntary

participation and ability to withdraw from the research at any time if they wish. The

ethics application form was filled and signed by the researcher and approved by the

researcher’s supervisor and was submitted to the CSU ethics committee for approval to

conduct the research. In conformity with the ethical requirements a detailed consent

form was given to the participants with clear instructions for participating in the

research, stating the purpose and objectives of the research study. Contact details of the

researcher were provided to allow respondents the opportunity to ask further questions

about the research if they wished. Ethics approval was granted, and a copy of the

approval letter is provided in (Appendix G).

3.11 Conclusion

This chapter provided the methodological details for conducting this research, outlining

the mixed methodology, quantitative and qualitative approach for data collection. A

detailed description of quantitative and qualitative approaches, population of the study,

sampling of the study (qualitative, quantitative), research instrument, data collection

procedure, the cover letter and pilot study is provided. This chapter also explained the

analytical procedures involved in this study such as demographic variables,

organisational variable, constructs of the study, data entry, coding and measure used for

this study. This was followed by further detail on the analytic plan used in this study;

exploratory factor analyses, and structural equation modelling. Finally justification for

SEM, interview analysis, transcription and themes were outlined followed by the

conclusion.

The next chapter presents detailed discussion of the quantitative findings of this study.

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Chapter Four

Quantitative Analysis, Results and Discussion


This chapter will present the analysis of the results and discussion based on the findings

of the current research. It begins by describing the demographic profile of the respondents

and the organisational characteristics and presenting results of each construct of the study:

reward management system, promotion practices, performance appraisal system, national

culture, organisational culture and organisational citizenship behaviour. This chapter

provides factor analyses of each construct in order to establish the reliability and validity of

the variables. In this chapter, all constructs of the study are separately examined for their

correlations and relationships. This is followed by MANOVA to assess the influence of

demographic and the organisational characteristics on each construct of the study. The final

two sections, sections ten and eleven, provide the results of the analysis and the hypotheses

testing by conducting SEM, a brief conclusion of the chapter.

4.2 Demographic and Organisational Profile of the Respondents

A breakdown of the demographic details of the respondents is provided in Table 4.1.

The number of male and female respondents was unevenly distributed, with 79.5%

(n=334) male and 20.5% (n= 86) female. The largest number of respondents were aged

26-40 years (34%, n=143), followed by 20-25 years (29.5%, n=124), and the smallest

age group 51-60 years (9.7%, n=67). For the participant’s education level, the highest

level was observed as postgraduate (64.8%, n=272), the participants holding PhD (16.2%

n=68) and working with dual responsibilities of teaching and administration, and the

lowest category was other education including intermediate or certificate level (2.1%,

n=9). The largest groups for the category of length of service were identified as having

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1-10 years (46.9%, n=197) followed by two groups 11-20 years (19.3%, n=81) and 21-

30 years with the same results (19.3%, n=81). The smallest group in this category

consisted of those who had length of service of 31-40 years (5.7%, n=24). The result

showed that for the category of grade of respondent most of the respondents were

holding basic pay scale (BPS) 18-19 (40.5%, n=170), followed by BPS-15-17 (28.6%,

n=120) and lowest category was BPS 20-22 (14% n=59).

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Table 4.1 Demographic and Organisational Profile of the Respondents

Variable Group Frequency Percent

Male 86 20.5

Gender

Female 334 79.5

20-25 124 29.5

Age (In Years)

26-40 143 34

41-50 86 14.2

51-60 67 9.7

Grade of

respondent

BPS 7-14 71 16.9

BPS 15-17 120 28.6

BPS 18-19 170 40.5

BPS 20-22 59 14

Length of Service

0-11 months 37 8.8

1-10 years 197 46.9

11-20 years 81 19.3

21-30 years 81 19.3

31 -40 years 24 5.7

Education

Diploma 6 1.4

Undergraduate 65 15.5

Post graduate 272 64.8

PhD 68 16.2

Other (Intermediate

or certificate level)

9 2.1

Total 420 100

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4.3 Data Normality: Skewness and Kurtosis

One of the fundamental assumptions in data distribution is normality of data. The shape

of the distribution of data is mainly described by two measures; kurtosis and skewness.

Hair et al. (2010) point out that skewness score ± 2.58 and kurtosis index from 8.0 to over

20.0 indicate a symmetrical distribution of data. The value of both kurtosis and

skewness for all the constructs of the study met the assumption of normal distribution of

data. In this study, as presented in Table 4.2, all the items were within the normal range

of skewness and kurtosis and both have positive and negative skewed and kustosis

values e.g. < ± 2.58, Hair et al. (2010, p. 73), Pallant (2007, p. 56) suggested both

skewness and kurtosis either positive or negative does not represents any problem

unless their score is within the normal range.

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Table 4.2 Skewness and Kurtosis Statistics

Variable Min Max Skew t-values Kurtosis t-values

PA9 1 5 -0.387 -3.234 -0.471 -1.971

PA3 1 5 -0.417 -3.489 -0.469 -1.963

PP8 1 5 -0.217 -1.816 -0.86 -3.596

PP7 1 5 -0.18 -1.505 -1.017 -4.256

PP6 1 5 -0.436 -3.65 -0.609 -2.547

PP5 1 5 -0.439 -3.676 -0.681 -2.848

PP3 1 5 -0.32 -2.679 -0.854 -3.573

PP2 1 5 -0.22 -1.843 -0.907 -3.794

PP1 1 5 -0.509 -4.258 -0.78 -3.264

RM5 1 5 -0.369 -3.089 -0.773 -3.234

RM7 1 5 -0.602 -5.038 -0.254 -1.064

RM9 1 5 -0.366 -3.061 -0.585 -2.446

NC1 1 5 -0.607 -5.081 -0.367 -1.534

NC2 1 5 -0.473 -3.959 -0.394 -1.649

NC6 1 5 -0.691 -5.779 -0.503 -2.102

NC7 1 5 -0.518 -4.33 -0.464 -1.939

NC8 1 5 -0.44 -3.683 -0.474 -1.981

OC24 1 5 -0.429 -3.589 -0.246 -1.029

OC23 1 5 -0.418 -3.495 -0.339 -1.417

OC22 1 5 -0.299 -2.506 -0.401 -1.677

OC21 1 5 -0.301 -2.515 -0.69 -2.885

OC20 1 5 -0.568 -4.751 0.125 0.523

OC18 1 5 -0.37 -3.097 -0.358 -1.496

OC17 1 5 -0.407 -3.408 -0.496 -2.076

OC16 1 5 -0.397 -3.319 -0.591 -2.473

OC15 1 5 -0.166 -1.393 -0.403 -1.686

OC14 1 5 -0.363 -3.037 -0.183 -0.765

OCB24 1 5 -0.97 -8.112 0.983 4.113

OCB21 1 5 -0.954 -7.984 1.2 5.019

OCB22 1 5 -0.798 -6.678 0.454 1.9

OCB23 1 5 -0.861 -7.205 1.194 4.994

Multivariate 222.647 50.438

166


In order to determine the dimensions of reward management system in public sector

universities in Pakistan, factor analysis (FA), correlation analysis (CA), regression

analysis (RA), and multivariate analysis of variance (MANOVA) were applied to

examine the reward management factorial structure and to ascertain convergent

reliability and variability of the relationship according to the data collected from

respondents within the Pakistani public sector universities.

Examination of the existing literature suggests that the reward management system is a

multi-dimensional factor. Therefore, the following hypothesis has been tested:

Hypothesis (Ha): The factor structure of reward management systems are interrelated,


4.4.1 Factor Analysis

According to Leeflang and Wittink (2000) factor analysis is a widely used technique to

investigate any highly correlated variables with a structure of overlapping variation between

predictors. This well-accepted tool is employed as a means of finding underlying

dimensions in variable sets and has been extensively used in the literature (e.g. Gorsuch,

1983; Hair et al., 2006; Hofstede, 1980a; Jolliffe, 1986; Rummel, 1970). Therefore, a

factor analysis was run to confirm the scale selected for the present study and is

supported by the data. Recommendations of Hair et al. (1998) were followed for the

purpose of this study with factor loadings equal to 0.40 or greater considered practically

significant.

167

Factor analysis is the best method to understand the essential structure about a particular

theory and its variables in analysis (Tabachnick & Fidell, 2007). Generally, the factor

analysis is used to reduce the information included in a number of items into smaller

factors (Gorsuch, 1983). Factor analysis helps in specifying the unit of analysis and

identifies the relationship between variables and respondents (Hair et al., 2006).

Therefore, factor analysis was used to study the possible factors which were grouped

together in a meaningful way (Tabachnick & Fidell, 2007). As to the psychometric

validation, Principal Component Analysis (PCA) was performed to examine dimensions

of the components. PCA can be used in many ways to summarize a large number of

variables into a smaller number of linear combinations that accounts for variability in

the pattern of correlations Pallant (2013) and Tabachnick and Fidell (2001) argued that

PCA is the better choice for the purpose of empirical summary of the data.

Factor analysis was performed using principal component analysis to estimate factors.

One most widely used method principle component analysis does not require the

normality assumption of the data (Valadkhani, Chancharat, & Harvie, 2008). Principle

component analysis determines minimum numbers of factors that account for maximum

data variance (Tabachnick & Fidell, 2007). With principle component the eigenvalues

technique was used for factor extraction and varimax rotation without specifying the

number of factors to be extracted was employed. The Kaiser-Meyer-Olkin (KMO)

sampling adequacy test were analysed to assess the appropriateness of using factor

analysis on the data.

The results depicted a solution with three factors. Once the matrix was considered

factorable, the eigenvalues and percentage of explained variance of each factor were

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then examined in order to determine the quantity of factors to be extracted. After the

factor loadings obtained from the factor analysis were further considered to test and

eliminate the items with no significant loading. The two items namely, question (1) “In

this university good performance does not necessarily get rewarded,” and question (10)

“Employees are always unclear of what their supervisors expect them to do,” were

removed for their low significance value. The removal of these items led to two factors

with eight items in one factor labelled as reward system and three items in the other

factor labelled as award recognition.

Once again factor analysis was carried out after removing the two items (results with the

two factors are shown in Table 4.3). Factors that contributed eigenvalue >1.0 were

significant and the remaining were not taken into consideration (Tabachnick & Fidell,

2007). The result of this study exhibited eigenvalues >1.0 for two components i.e.

reward system (5.841) and award recognition (1.026). These two components explained

total variance of 62.4% which is higher than the recommendations. 60% or above

cumulative variance satisfies the criterion of variance percentage (Hair et al., 2006).

This solution explained 36.926 cumulative percent of the variance and 62.427

cumulative percent for components. Hair et al. (2006) suggested that lower

communality identifies that an item does not fit well with other items in the same

component. Communality lower than 0.5 (50%) are considered to be weak items (Hair

et al., 2006). In this study total communalities of each item were greater than 0.5; all

communalities were noted (1.0.) for each item which are higher than the recommended

value. Norusis (1992) recommended the Kaiser-Meyer-Olkin (KMO) test to measure

sampling adequacy and Bartlett’s test of Sphericity to achieve appropriate factor

analysis results. Tabachnick and Fidell (2007) suggested that a value of KMO greater

169

than 0.6 is statistically significant and is suitable for factor analysis to provide a discreet

set of factors, and Bartlett’s test of sphericity indicates that correlations among the

measurement items higher than 0.3 are suitable for factor analysis (Hair et al., 2006).

The Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy was .920 which was

greater than 0.6 and Bartlett’s test was significant at (Chi-square) 2343.058 and satisfied

the initial assumptions for the factor analysis (Bartlett, 1954; Kaiser, 1974). The mean

score for each item was identified >2.87 and <3.37. The standard deviation were

confirmed >1.0 for each item. Cronbach Alpha was noted to 0.89 for factor one (reward

system) and 0.78 for factor two (award recognition); that signifies the reliability of the

measures. Cronbach’s α is easier to calculate and is a well-accepted measure within

research (Nunnally & Bernstein, 1994; Tabachnick & Fidell, 2007). Generally,

Cronbach’s α coefficient 0.70, is acceptable, however, it may be accepted at 0.60

(Sekaran, 2000).

After using factor analysis two factors emerged as seen in Table 4.3. Factors loaded

from the factor analysis ranged from 0.579 to 0.803 for the first factor, namely reward

system that consisted of eight items. The second factor namely, award recognition,

ranged from 0.754 to 0.828 and consisted of three items (Churchill, 1979; Henseler,

Christian, & Rudolf, 2009). The factor loading was above the minimum threshold

criterion 0.4 (Hair et al., 2006). Each factor has a Cronbach’s alpha range from 0.89 to

0.78 which is above 0.60 and satisfied the requirements of the psychometric reliability

test (Hair et al., 2006). All values exceed the recommended threshold 0.70 (Sekaran,

2000) indicating good internal consistency among the items within each dimension,

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each variable, and the entire scale. The results demonstrated the factor structure of

reward management. Therefore, Ha is accepted.

4.4.2 Definition of the Latent Factors

Reward System

Factor one, reward system, showed that the question “Supervisors are supportive of

employees’ ideas and ways of getting things done” has a high factor loading (0.803) on

the first factor. The inspection of the factor loadings indicates that for each of the

variables loading was >0.579 on the reward system. The highest factor loading indicates

the highest explanatory power in the reward system factor.

Award Recognition

Factor two, award recognition, shows that the question “Promotions and pay increases

are based on achieving documented performance objectives” has a high factor loading

(0.828) on the second factor. An examination of the factor loadings indicates that each

of the variables loading on award recognition are much higher than on reward system,

and the highest factor loading indicates greater explanatory power.

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Table 4.3 Descriptive Statistics, Factor Loadings, and Reliability of Reward System and Award Recognition

Factor Item Mean SD Loadings Cronbach's

Alpha

Reward

system

Supervisors are supportive of employees’ ideas and ways of

getting things done. 3.35 1.031 0.803 0.89

Supervisors recognize employees for doing high-quality work. 3.24 1.089 0.77

Supervisors are responsive of employees' requests for help or

guide. 3.37 1.068 0.751

Employees are satisfied with the recognition they receive for

doing good jobs. 3.27 1.135 0.692

This university noticeably celebrates excellent service. 3.23 1.168 0.683

Supervisors use the rewards they have to let employees know

when they have done fine jobs. 3.12 1.058 0.666

Management provides excellent incentives and rewards to

every employee at all levels. 2.87 1.191 0.586

In this university, promotions go to the people who really

deserve them. 3.11 1.187 0.579

Award

recognition

Promotions and pay increases are based on achieving

documented performance objectives.

3.06 1.189 0.828 0.78

Managers consistently tell employees about the standards used

to evaluate job performances.

3.12 1.176 0.759

The performance appraisal process is linked to reward system. 2.91 1.100 0.754

Note: Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization (.90) and Bartlett test (Chi-square) 2343.058

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4.4.3 Correlation Analysis

Correlation analysis was employed to predict the relationship between the variables,

namely reward system and award recognition. The results are presented in Table 4.4.

According to Sekaran (2000) tests of hypothetical relationships are usually categorized

into two groups i.e. ‘causal’ which investigate the best or exact relationships with cause

and effect and ‘correlational’ which examines the important construct relations

associated with certain problems of domain. This study examined the relationships

between the constructs of reward management.

Churchill (1979) suggested a cut off value 0.30 for item-to-total correlation. The value

above 0.7 (Henseler et al., 2009) and no less than 0.4 (Churchill, 1979) are

recommended satisfactory. For this study, correlation matrix analysis was conducted to

assess the appropriateness of factor analysis under the factors reward system and award

recognition variables, and showed a correlation among the measurement items higher

than 0.3 and was suitable for factor analysis (Hair et al., 2006).

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Table 4.4 Inter-correlations of Reward System and Award Recognition

1 2 3 4 5 6 7 8 9 10 11

1. Employees are satisfied with the recognition

they receive for doing good jobs.

2. In this university, promotions go to the people

who really deserve them. 0.561

3. Management provides excellent incentives

and rewards to every employee at all levels. 0.517 0.672

4. This university noticeably celebrates excellent

service. 0.524 0.526 0.586

5. Supervisors recognize employees for doing

high-quality work. 0.588 0.508 0.523 0.598

6. Employees are satisfied with the recognition

they receive for doing good jobs. 0.442 0.479 0.435 0.484 0.587

7. Supervisors are supportive of employees’

ideas and ways of getting things done. 0.511 0.474 0.485 0.476 0.542 0.651

8. Supervisors use the rewards they have to let

employees know when they have done fine

jobs. 0.435 0.52 0.51 0.532 0.489 0.563 0.588

9. The performance appraisal process is linked

to reward system. 0.36 0.455 0.403 0.377 0.399 0.419 0.387 0.464

10. Promotions and pay increases are based on

achieving documented performance

objectives. 0.411 0.503 0.487 0.394 0.389 0.372 0.346 0.433 0.559

11. Managers consistently tell employees about

the standards used to evaluate job

performances. 0.375 0.475 0.504 0.486 0.425 0.444 0.37 0.417 0.522 0.567 1

Note: Correlation is Significant at the 0.01 level (one tailed)

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4.4.4 Regression Analysis

Certain principles for achieving robust and authenticated results are accepted within the

literature on data analysis techniques. The present study considered a few such practices

in order to examine the measurement path and explain the regression estimation of

variables (Henseler et al., 2009; Janice et al., 1996). Statistical tools such as regression

(e.g. linear regression, factor analysis, PCA, ANOVA, and MANOVA) are widely used

by many researchers (e.g. Chin, 1998; Gefen et al., 2000; Gerbing & Anderson, 1988;

Hair et al., 2006; Mathieson, 1991; Taylor & Todd, 1995) to analyze the relationship

between independent and dependent variables at one time.

Regression analysis was employed to predict between variables of interest (Şchiopu,

Petre, & NegoiŃă, 2009). In this study, the linear regression method was applied for

obtaining R squared, and t-value of significance, The determination of coefficient (R2)

provides the percentage of variation in dependent variable(s) explained by independent

variable(s) (Gefen et al., 2000).

According to the Montgomery, Peck, and Vining (2012) R2 represents the level of the

latent construct’s explained variance and R and R2, the standard error S used to

determine the best equation and the higher the values of R and R2, and the lower the

values of S, the better the goodness of the fit. Further, Chin (1998) suggests that having

R2 0.67 is considered as substantial; R2 0.33 is considered as moderate, and R2 0.19 is

considered as weak.

For this study regression analysis was performed between the two factors of reward

management, namely reward system and award recognition, as dependent variables and

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demographic as independent variables using SPSS-19. It can be seen from Table 4.5

that the factor award recognition had a significant relationship with grade of respondent

(β= .125, p< 0.05). In this regard results indicate that the interaction of the demographic

variables and reward management is significantly influenced and lending support to the

hypothesis.

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Table 4.5 Regression Analysis for Reward Management System

Reward System Award Recognition

Model

(Constant) 2.922 3.056

(10.64) (10.03)

Age -.046 -.038

(-.57) (-.479)

Gender .074 -.015

(1.46) (-.299)

Education -.044 -.072

(-.766) (-1.24)

Grade of Respondent .080 .125**

(1.31) (2.06)

Length of Service .015 .039

.186 .496 Notes: t-values in parenthesis are presented.

R2 (.009); (.012); ***p < 0.01, ** p < 0.05 and *p < 0.10

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4.4.5 Multivariate Analysis of Variance

As suggested Gefen et al. (2000), Chin (1998), Gerbing and Anderson (1988), Hair et al.

(2006) and Hair et al. (2010) MANOVA is generally employed to verify the relationship

between independent and dependent variables. MANOVA is used when several

dependent variables are measured for each sampling unit (Olumayede, 2012).

Multivariate analysis of variance method is neither tidy nor simple but is a complex

method (Borgen & Seling, 1978; Hair et al., 2010) and generally provides overall test

compilation for significant differences among groups in order to determine the

significant effects (Borgen & Seling, 1978; Hair et al., 2010). For this study MANOVA

was used to analyse how dependent variables (reward system and award recognition)

have an effect on the independent variables (age, gender, education, grade and length of

service).

In order to test the hypothesis and to analyse the dependent variables multivariate

analysis of variance (MANOVA) was employed as suggested by (Hair et al., 2010).

Table 4.6 shows multivariate test results that demonstrate statistically significant

differences were found between gender, age, education, grade of respondent and length

of service as independent variables and reward system as the dependent variable. Field

(2013) considered 0.5 as significant criterion. Using Roy’s Largest Root and combining

demographic variables (independent) revealed a number of significant relationships

with reward management system (dependent) namely age and education together has

significant effect on reward management system (F= .005, p< 0.05), age and grade of

respondent (F= .037, p< 0.05), and education and length of service (F= .012, p< 0.05).

Similarly, gender has a significant effect on reward management system, Pillai's Trace

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(F= .09, p< 0.05), Wilks' Lambda (F= .09, p< 0.05), Hotelling's Trace (F= .09, p< 0.05)

and Roy’s Largest Root (F= .09, p< 0.05).

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Table 4.6 MANOVA for Reward Management System

Variable Test Name Value Approx

F

Hypothesis df Significance of F

Age and Education Roy's Largest Root 0.057 3.474 5 .005**

Age and Grade of the

respondent

Roy's Largest Root 0.05 2.164 7 .037**

Education and Length

of Service


Gender Pillai's Trace 0.03 4.75 2 .009**

Wilks' Lambda 0.97 4.75 2 .009**

Hotelling's Trace 0.031 4.75 2 .009**

Roy's Largest Root 0.031 4.75 2 .009** Note: ***p < 0.01, ** p < 0.05 and *p < 0.10

180

Post Hoc analysis using Tukey’s least significant difference (LSD) was employed to

compare variables in order to determine significant effects of dependent and

independent variables. It was found that employees within age group 41-50 years had a

significantly positive (.003: p=.05) effect on the reward system, and employees aged of

51-60 years were found to have a significant (.050: p=.10) effect on award recognition.

Test of Between – Subject effects was conducted to determine the sum of squares. It can

be seen from Table 4.7 that there was significant effect of gender on the reward system

(F=.002, p<.01). The value of (F=.025, p<.05) indicated that there was also a

significant effect of gender and education on award recognition. The interaction of

education and length of service of the employee was found to have significant effect on

award recognition (F=.033, p<.10).

There is conclusive evidence that gender is influencing the reward system whereas, age,

education grade and length of service are not. However, the results demonstrated that

gender, education and length of service of employee are influencing award recognition

and age and grade are having no influence. Therefore, the above analyses support Ha

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Table 4.7 ANOVA Between Independent and Dependent Variables

Independent

Variable

Dependent

Variable

Type III

Sum of

Squares

df Mean

Square

F Sig

Gender Reward

system

7.97 1 7.970 9.343 .002***

Gender ×

Education

Award

recognition

13.382 5 2.676 2.605 .025**

Education ×

Length of

Service

Award

recognition

19.005 9 2.112 2.055 .033**

Note: ***p < 0.01, ** p < 0.05 and *p < 0.10.

a. R Squared = .383 (Adjusted R Squared = .147)

b. R Squared = .257 (Adjusted R Squared = -.027)

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4.4.6 Discussion on Reward Management System

The importance of reward management is widely recognized (Monika & Bonsdorff,

2011). A number of studies have examined the impact of reward management (e.g.

performance based rewards by Muduli (2011), age-related differences in reward

preferences by Monika and Bonsdorff (2011), psychological reward satisfaction by

DeGieter et al. (2010), manage through reward by DeGieter et al. (2008) and reward

management by Drucker and White (2000). Little attention has been paid to reward

management systems in relation to the public sector universities in developing countries.

The aim of this study was to analyse the underlying factor structure of reward

management and place the construct of reward management in the broader theoretical

framework of human resource management by developing a nomological network of

related variables. The findings of the factor structure help to recognise the ways in

which reward management is perceived by employees and how reward management

may influence perceptions of employees and outcomes within organisations. Two

factors of reward management i.e. reward system and award recognition, were found to

be associated with the demographic variables i.e. age, gender, education and length of

service. Evidence from previous studies has shown that the reward system increases

performance of both the organisation and employees and a well accepted reward system

improves employee efficiency which increases organisational productivity (Shah et al.,

2011). Human capital is the most important asset for any organisation, so attracting

human capital requires organisations to link their reward systems with organisational

performance (Frye, 2004).

Studies of Aycan et al. (2007), Ali (1992), Napier and Vu (1998), and Robertson et al.

(2002) identified the scarcity of research relating to developing countries. However an

183

attempt was made by Jaeger and Kanungo (1990) to relate culture to HRM where they

noted that managerial beliefs influence both organisational and employee’s objectives.

Therefore, it was important to understand the factor structure of reward management;

identifying manager’s assumptions regarding the contribution of employees or

employee’s expectations in return for their efforts.

In identifying the cultural aspects of organisations Hofstede (1983) and Aycan et al.

(2000), found Pakistan had the highest score in power distance. In a power distance

society like Pakistan the factor structure of reward systems provides insights for

managers in designing appropriate reward systems, identifying and incorporating what

employees consider important including both financial and nonfinancial incentives. For

example introducing performance orientation, acknowledging achievements and

recognizing length of service or commitment of employees to develop reward systems

which are efficient and suitable for both the organisation and employees, whilst

considering the local culture. The findings may be influenced by culture therefore;

reward systems should be culturally developed and managed. Hofstede (1983) asserted

that management is ‘culturally dependent’. Therefore organisations can only succeed in

achieving their objectives if they are familiar with local culture. Gupta and House (2004)

found a relationship between national culture and organisational culture and argued

‘organisations mirror societies’ (Gerhart, 2009; Javidan et al., 2004).

The present study establishes the baseline data of the factor structure of reward

management among managers and employees in Pakistani universities. It provides

insights to better understand the reward system and adds to the body of literature on

employee perceptions of reward management by investigating public sector university

184

employees, revealing that the two factors within reward management (reward system

and award recognition) are highly correlated. The findings of the GLOBE study were

significant in identifying the underlying importance of culture in management practice.

Whilst their grouping of countries from Southern Asia (e.g. India, Indonesia, Iran,

Malaysia, Philippines and Thailand) did not include Pakistan, these countries may share

some characteristics with Pakistan, as developing nations, but there are also some

significant differences in culture, values, norms and religion. Despite this omission this

study contributed to the recognition of a unique factor structure of reward management

for indigenous cultures and drew the attention of international HR experts and scholars,

to the need to further examine the impact of culture on management and employee

behaviour.

Based on the theoretical background and findings of the study the hypothesis was tested

to establish whether the factor structure of reward management are interrelated, multi-

dimensional and optimal predictors. The findings provide confirmation of the

hypothesis and significant support for the factor structure of reward management. The

results of factor analysis revealed that the highest scoring factor across both factors was

award recognition.

In comparing the findings of the current study with that of Husin et al. (2012), a

common conclusion can be made; both show the valence of reward management.

However there are some differences in significant predictors between this study and that

of Husin et al. (2012). Hence, the finding that demographic variables are related to

reward management for the current study could be associated with the difference

between these two studies, i.e. sample size and context. Husin et al. (2012) found that

185

rewards systems do not enhance work efficiency and are gender biased. Additionally,

Monika and Bonsdorff (2011) investigated reward preferences of Finnish nurses and

found age related reward preferences: nurses aged 50-59 years had the lowest

preferences for financial rewards and preferred job security, flexible working hours and

recognition, whereas the nurses aged 20-29 had the highest preferences for financial

rewards. Mujtaba and Shuaib (2010) examined the use of a total reward approach and

found that organisations should structure reward systems that enhance performance and

encourage the effort of employees. Reward programs should be a part of an integrative

and comprehensive performance management system rather than a standalone policy.

Hafiza, Shah, Jamseheed, and Zamam (2011) conducted their study in Pakistan on the

relationship between rewards and employees motivation and found a relationship

between extrinsic rewards (i.e. fringe benefits, promotions and job security) and the

employees’ motivation. However, results of this study suggest that the relationship

between reward management and demographic variables is confirmed. A significant

link was found among age, gender, education, grade and length of service with the

components reward system and award recognition. As hypothesized, demographic

variables were partially associated with reward management. Therefore, supporting the

findings of Tones et al. (2010) that demographic variables affect how employees

perceive opportunities at work. Employee involvements in special projects,

opportunities for career development through training and appreciated performance are

often seen as reward for recognition of employee diligence. The result supports the idea

that organisations with effective reward systems have lower turnover, greater

productivity, and better performance (DeGieter et al., 2008; Huselid, 1995; Ichniowski

et al., 1997).

186

Given the objective of this study the results strengthen the need for awareness of

managers of the consequences of the factor structure of reward management. The results

of the current study provide insights for understanding reward management practice in

order to design attractive salary packages, to enhance long term commitment and

efficient staffing practices. This supports previous studies illustrating the essential role

of reward management as enforcing and motivating an employees’ belief in the degree

to which they affect their work environment, their competence, the meaningfulness of

their job and the perceived autonomy of their work (Perkins & Vartiainen, 2010). There

is a need to incorporate recognition of employee efforts into both human resource

management practices and current organisational models (Brun & Dugas, 2008).

Developing human capital through continuing rewards for performance can increase the

output of employees either through improvement in skills or improvement in job

satisfaction (Dessler, 2003; Stup et al., 2006).


In order to determine whether the promotion practices scale had a valid factor structure,

factor analysis (FA), correlation analysis (CA), and regression analysis (RA), were

applied to examine the promotion practices factorial structure and to ascertain

convergent reliability and variability of the relationship according to the data collected

from respondents within the Pakistani public sector universities.

To evaluate the dimensions of promotion practices, the following hypothesis was

proposed and tested:

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Hypothesis (Hb): The factor structure of promotion practices are interrelated, multi-



In order to determine the underlying dimensions of promotion practices, factor analysis

was performed to identify the possible factorial structures of promotion practices

(Tabachnick & Fidell, 2007), and depicted a solution with one factor consisting of eight

items. The findings from the factor analysis can be seen in Table 4.8. Factors that

contributed an eigenvalue >1.0 were significant and were taken into consideration

(Tabachnick & Fidell, 2007). The identified factor named ‘fair treatment in promotion’

(5.062) explained total variance of 63.270% which is higher than the recommendations.

60% or above cumulative variance satisfies the criterion of variance percentage (Hair et

al., 2006). In this study total communalities of each item were greater than 0.5; all

communalities were noted (1.0.) for each item which are higher than the recommended

value. The Kaiser-Meyer-Olkin (KMO) test to measure sampling adequacy and

Bartlett’s test of Sphericity to achieve appropriate factor analysis results was again

performed and returned a result of Kaiser-Meyer-Olkin (KMO) measure of sampling

adequacy of 0.896 which was greater than 0.6 and Bartlett’s test significant at (Chi-

square) 2139.765 which satisfied the initial assumptions for the factor analysis (Bartlett,

1954; Kaiser, 1974). The mean score for each item was identified >2.87 and <3.21. The

standard deviation were confirmed >1.0 for each item. Cronbach Alpha was noted to

0.91 that signifies the reliability of the measures.

After using factor analysis one factor emerged namely ‘fair treatment in promotion’

with loadings ranging from 0.748 to 0.824 consisting of eight items (See Table 4.8).

188

The factor loading was above the minimum threshold criterion 0.4 (Hair et al., 2006)

and satisfied the requirements of the psychometric reliability test (Henseler et. al., 2009;

Churchill, 1979).


Fair Treatment in Promotion

The factor fair treatment in promotion, showed that the question “The university is fair

and equitable in its treatment of management” has a high factor loading (0.842). The

inspection of the highest factor loadings indicates that for each of the variables loading

was >0.748. The highest factor loading indicates the highest explanatory power in the

fair treatment in promotion.

189

Table 4.8 Descriptive Statistics, Factor Loadings, and Reliability of Fair Treatment in Promotion


Alpha

Fair Treatment in

Promotion

The university is fair and equitable in its treatment of

management.

3.04 1.134 0.824 0.91

The university rewards the excellence in performance

through promotion system.

2.88 1.149 0.823

The university provides promotional opportunities. 3.21 1.111 0.811

The university treats you fairly and equitably with regards to

promotion.

3.05 1.174 0.81

The university provides opportunities for career

development.

3.05 1.272 0.806

The university acknowledges the long hours you devote to

work.

2.87 1.206 0.782

The university supports ongoing professional development. 3.20 1.132 0.755

The university provides clear and consistent requirements

for promotion.

3.21 1.188 0.748

Note: Extraction Method: Principle Component Analysis. Rotation Method: Varimax with Kaiser Normalization (.89) and Bartlett test (Chi-square) 2139.765

190


Correlation analysis was employed to predict the relationship between the variables of

the factor fair treatment in promotion. The results are presented in Table 4.9. For this

study, correlation matrix analysis was conducted to assess the appropriateness of factor

analysis under the factor fair treatment in promotion variables, and showed a correlation

among the measurement items higher than 0.4 and was suitable for factor analysis (Hair

et al., 2006).

191

Table 4.9 Inter-correlations of Fair Treatment in Promotion

1 2 3 4 5 6 7 8

1 The university provides clear and consistent

requirements for promotion

2 The university treats you fairly and equitably

with regards to promotion 0.724

3 The university is fair and equitable in its

treatment of management 0.62 0.704

4 The university provides opportunities for career

development 0.47 0.517 0.597

5 The university supports ongoing professional

development 0.434 0.491 0.523 0.689

6 The university provides promotional

opportunities 0.524 0.569 0.538 0.678 0.636

7 The university acknowledge the long hours you

devote to work 0.49 0.519 0.613 0.578 0.545 0.547

8 The university reward excellence in performance

through promotion system 0.518 0.624 0.632 0.592 0.506 0.658 0.685 1

Note: Correlation is significant at the 0.01 level (one tailed)

192


In this study, linear regression method was applied for obtaining R squared, and t-value

of significance. The determination of coefficient (R2) provides the percentage of

variation in dependent variable(s) explained by independent variable(s) (Gefen et al.,

2000).

For this study regression analysis was performed between fair treatment in promotion as

dependent variables and demographic as independent variables using SPSS-19. It can be

seen from Table 4.10 that there is a linear relationship between fair treatment in

promotion with grade of the respondent which was noted as statistically significant

(β=.108, p< 0.10). Thus the course of analyses lends support to Hb.

193

Table 4.10 Regression Analysis for Promotion Practice

Fair Treatment in

Promotion

Model

(Constant) 2.582 (-8.84) Age -0.063 (-.79) Gender .039 (-.77) Education -.027 (-.47) Grade of Respondent .108* (-1.78) Length of Service .125 (-1.58) Notes: t-ratios in parenthesis are presented.

R2 (.022); ***p < 0.01, ** p < 0.05 and *p < 0.10

194

4.5.5 Discussion on Promotion Practice

Organisations are experiencing significant changes in their structure and environment.

One of the issues emerging from the debates about changes in job quality is that

promotion is an important element (Valverde et al., 2007). The purpose of this study

was to examine the perceptions of employees on promotion practices and explore the

underlying factor structure of promotion practices and to identify the relationship

between promotion practices and demographic variables. The review of literature

identifies certain factors that influence promotion practices, such as training provision,

knowledge and skills of employees and type of organisation. As promotion has received

little research attention in the service sector, particularly in universities, the findings of

the factor structure help to identify employee perception of promotion practices.

Promotion practices in the public sector were investigated in terms of structural factors

related to the administrative employees to examine the use of promotion policies that

influence employee performance.

This study found a relationship between demographic variables and promotion practices.

Results demonstrated that the grade of employees had a positive impact on promotion.

Since, promotion has been shown to be determined by the factor structure, management

should establish policies to facilitate promotion practices to enhance employee

performance. This reflects the arguments of Zaleska and De Menezes (2007) who place

emphasis on the organisation’s responsibility in understanding the changing needs of

their employees and the environment, and providing support and encouraging

performance. Collaborative efforts in professional career development benefits both

employees and organisations (Tan, 2008).

195

Studies by Go and Kleiner (2001), Benabou and Tirole (2003), Melero (2010), Herpen

et al. (2006), and Gorjup et al. (2008) identified, that prospects of promotion encourage

employees to work harder, create trust and enhance the self-esteem of employees and

increase extrinsic and intrinsic motivation. Therefore, it was important to understand the

factor structure of promotion practices identifying employee perceptions of promotion.

The present study establishes the factor structure of promotion practices for authorities

and employees in the public sector. It adds to the body of literature on employee

perceptions of promotion practices by investigating administrative employees and

revealed one factor with highly correlated variables.

Based on the theoretical background and findings of the study a hypothesis was tested

and established a positive and significant relationship between demographic variables

and promotion practices. The findings provide confirmation of the hypothesis and

significant support for the earlier studies of Tessema and Soeters (2006) and Park et al.

(2003) that identified a positive correlation between promotion practices and perceived

employee performance.

In comparing the findings of the current study with the study developed by Krivokapic-

Skoko et al. (2009) the importance of management for fair and equitable promotion

practices was highlighted. Both studies examined the factor scores of employee

perceptions within a university context. However there are some differences in

predictors of this study and that of Krivokapic-Skoko et al. (2009). Given the objectives

of this study, the results strengthen the awareness of university management of the

consequences of the factor structure of promotion practices. The results of the current

study provide insights for understanding promotion practices that will assist

196

organisations in retaining efficient employees, with the best available talent through

recognizing and rewarding employees efforts or filling vacancies. This supports

previous studies, illustrating that merit promotion can lead to enhanced performance in

the organisation (Park et al., 2003). There is a need to provide opportunities for career

advancement (Armstrong, 2003), because these incentives encourage better employee

performance whilst increasing their learning capabilities, and success of the

organisations relies on the performance of their employees.


In order to determine the dimensions of the performance appraisal systems in public

sector universities in Pakistan, factor analysis (FA), correlation analysis (CA), and

regression analysis (RA) were applied to examine the performance appraisal system

factorial structure and to ascertain convergent reliability and variability of the

relationship according to the data collected from respondents within the Pakistani public

sector universities.

In the course of analysis, the following hypothesis was proposed and tested:

Hypothesis (Hc): The factor structure of performance appraisal system are interrelated,



In order to uncover the underlying dimensions of performance appraisal systems, factor

analysis was performed to extract factors. The results depicted a solution with nine

factors. Once the matrix was considered factorable, the eigenvalues and percentage of

197

explained variance of each factor were then examined in order to determine the quantity

of factors to be extracted. After the factor loadings obtained from the factor analysis

were further considered five items namely, question (12) “Assessments are conducted

by the immediate supervisor”, (25) “All employees have their performance evaluated

regardless of rank or tenure”, (29) “Any performance feedback is given in writing

whether or not there is a formal meeting with the supervisor to discuss the assessment”,

(34) “Supervisors are appraised by employees reporting to him/her”, and (35)

“Supervisors are appraised on their skills as performance assessors”, were removed due

to their low significance value. The removal of these items led to nine factors and after

examining the reliability of each factor seven factors were considered-nine items in

factor one labelled as perceptions of performance appraisal, seven items in factor two

labelled as assessment of performance, five items in factor three labelled as training on

appraisal, five items in factor four labelled as ratings of performance, five items in

factor five labelled as aspects of appraisal, three items in factor six labelled as procedure

for appraisal and two items in factor seven labelled as information for appraisal.

Once again factor analysis was carried out after removing five items (results with the

seven factors are shown in Table 4.11). Factors that contributed eigenvalue >1.0 were


2007). The result of this study exhibited eigenvalues >1.0. for seven components i.e.

perceptions of performance appraisal (13.845), assessment of performance (2.388),

training on appraisal (2.299), ratings of performance (1.842), aspects of appraisal

(1.505), procedure for performance (1.347) and information for appraisal (1.130). These

seven components explained total variance of 64.4% which is higher than the

recommendations. 60% or above cumulative variance satisfies the criterion of variance

198

percentage (Hair et al., 2006). This solution explained 33.768 cumulative percent of the

variance and 64.417 cumulative percent for components. In this study total

communalities of each item were greater than 0.5; all communalities were noted (1.0)

for each item which was higher than the recommended value. Norusis (1992)

recommended the Kaiser-Meyer-Olkin (KMO) test to measure sampling adequacy and

Bartlett’s test of Sphericity to achieve appropriate factor analysis results.

The Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy was 0.921 which was




confirmed >0.889 for each item. Cronbach Alpha was noted to 0.90 for factor one

(perceptions of performance appraisal), 0.85 for factor two (training on appraisal), 0.79

for factor three (ratings on performance), 0.81 for factor four (aspects of appraisal), 0.78

for factor five (record of performance), 0.86 for factor six (procedure for appraisal) and

0.74 for factor seven (information for appraisal); that signifies the reliability of the

measures.

After using factor analysis seven factors emerged as seen in Table 4.11. Factors loaded

from the factor analysis ranged from 0.418 to 0.726 for the first factor, namely

perceptions of performance appraisal that consisted of nine items. The second factor

namely, training on appraisal, ranged from 0.420 to 0.732 consisting of seven items.

The third factor namely ratings on performance ranged from 0.463 to 0.817 consisting

of five items. The fourth factor namely aspects of appraisal ranged from 0.449 to 0.786

consisting of five items. The fifth factor namely records of performance ranged from

199

0.497 to 0.698 consisting of five items. The sixth factor namely procedure for appraisal

ranged from 0.561 to 0.811 consisting of three items. The seventh factor namely

information for appraisal ranged from 0.768 to 0.790 consisting of two items (Henseler

et al., 2009; Churchill, 1979). The factor loading was above the minimum threshold

criterion 0.4 (Hair et al., 2006). Each factor has a Cronbach’s alpha range from 0.74 to

0.90 which is above the recommended threshold 0.60 and satisfied the requirements of

the psychometric reliability test and indicates good internal consistency among the

items within each dimension, each variable, and the entire scale (Hair et al., 2006;

Sekaran, 2006).


Perceptions of Performance Appraisal

Factor one, perceptions of performance appraisal, showed that the question “the

appraisal system is used for succession planning” has a high factor loading (0.726). The

inspection of the factor loadings indicates that for each of the variables loading was

>0.418 on the perceptions of performance appraisal. The highest factor loading

indicates the highest explanatory power in the perceptions of performance appraisal

factor.

Training on Appraisal

Factor two, training on appraisal, represents the question “supervisors are provided

adequate training on conducting performance appraisals” and has a high factor loading

(0.732). An examination of the factor loadings indicates that each of the variables

loading on training on appraisal are much higher than on perceptions of performance

appraisal, and the highest factor loading indicates greater explanatory power.

200

Ratings on Performance

Factor three, ratings on performance, represents the question “numerical ratings of

performance are included in the assessment report” and has a high factor loading

(0.817). An examination of the factor loadings indicates that each of the variables

loading on ratings on performance are much higher than on training on appraisal, and

the highest factor loading indicates greater explanatory power.

Aspects of Appraisal

Factor four, aspects of appraisal, shows the question “situational constraints (e.g.

computer faults or electricity failure or political unrest so the work/assignments are

delayed) are taken into account when the assessment is conducted” has a high factor

loading (0.786). An examination of the factor loadings indicates that each of the

variables loading on aspects of appraisal is lower than ratings on performance, training

on appraisal and perceptions of performance appraisal.

Record of Performance

Factor five, record of performance, indicates that the question “supervisors are required

to keep daily records of employee performance” has a high factor loading (0.698). An

examination of the factor loadings indicates that each of the variables loading on record

of performance is higher than on aspects of appraisal.

Procedure for Appraisal

Factor six, procedure for appraisal, represents that the question “employees keep daily

records of their own performance” has a high factor loading (0.811). The inspection of

the factor loadings indicates that for each of the variables loading was >0.561 on the

201

procedure for appraisal. The highest factor loading indicates the highest explanatory

power in the perceptions of performance appraisal factor.

Information for Appraisal

Factor seven, information for appraisal, shows that the question “the appraisal system is

used for demotion decisions” has a high factor loading (0.790). An examination of the

factor loadings indicates that each of the variables loading on information for appraisal

are much higher than on perceptions of performance appraisal, rating on performance,

trainings on appraisal, aspects of appraisal and procedure for appraisals and the highest

factor loading indicates greater explanatory power.

202

Table 4.11 Descriptive Statistics, Factor Loadings, and Reliability of Perceptions of Performance Appraisal, Training on Appraisal, Ratings

on Performance, Aspects of Appraisal, Record of Performance, Procedure for Appraisal and Information for Appraisal


Alpha

Perceptions of

Performance

Appraisal

The appraisal system is used for succession planning. 2.94 1.053 0.726 0.90

The appraisal system is used for promotion decisions. 3.04 1.069 0.723

The appraisal system is used for recognition purposes. 3.01 1.029 0.705

The appraisal system includes a component where

employees are given feedback on their assessment. 3.02 1.109 0.704

The appraisal system assists employees in setting work-

related goals. 3.06 1.064 0.690

The appraisal system is used for making salary adjustments. 2.92 1.089 0.677

The appraisal system is used to identify training needs. 2.95 1.091 0.602

The appraisal system considers improvement when an

evaluation is conducted. 3.18 0.983 0.450

Employees are evaluated on competencies (e.g. leadership,

creativity, communication or other relevant competencies). 3.08 1.113 0.418

203

Training on

Appraisal

Supervisors are provided adequate training in conducting

performance appraisals. 2.85 1.082 0.732 0.85

Employees are provided adequate training in how to actively

participate in the appraisal process. 2.72 1.125 0.719

Appraisals are only conducted for employees considered less

than “standard” in their Performance 2.89 0.991 0.639

A formal meeting is held where employees are given verbal

feedback on their performance assessment. 3.03 1.130 0.584

Performance appraisal is conducted to identify employee

career paths within the organisation. 3.12 1.013 0.541

The formal appraisal meeting between employer and

employee takes between one and two hours. 2.70 1.030 0.491

Evaluations are checked by an independent source other than

the primary assessor for accuracy and fairness. 3.05 1.068 0.420

Ratings on

Performance

Numerical ratings of performance are included in the

assessment report. 3.44 1.083 0.817 0.79

Performance evaluation forms include a written (i.e. narrative)

assessment. 3.39 1.075 0.678

A numerical rating indicating overall performance is

calculated as part of the assessment 3.34 1.022 0.675

Assessments are conducted annually. 3.56 1.047 0.626

Employees are evaluated on how well they perform individual

tasks or behaviour (e.g. how well they prepared a report or

dealt with a student/teacher enquiry).

3.25 1.091 0.463

204

Aspects of

Appraisal

Situational constraints (e.g. computer faults or electricity

failure or political unrest so the work/assignments are

delayed) are taken into account when the assessment is

conducted.

3.03 1.103 0.786 0.81

The “numbers” used to rate various aspects of performance

are appropriate (e.g., a 1 to 7 point scale, a 1 to 5 point

scale, a 1 to 3 point scale).

3.16 1.027 0.581

The various aspects of performance on which an employee

is assessed are appropriate. 3.11 0.951 0.561

The appraisal system puts adequate emphasis on team

performance. 3.02 1.072 0.545

For each area of performance, the appraisal system provides

information concerning how the employee compares to

other employees in the same job family.

3.01 1.033 0.449

Record of

Performance

Supervisors are required to keep daily records of employee

performance. 2.99 1.132 0.698 0.78

Supervisors are required to keep weekly or bi-weekly

records of employee performance. 3.00 1.105 0.636

As employees’ experience or tenure increases, assessments

are made less frequently. 2.96 0.983 0.593

There is more than one assessor to assess any one employee. 3.15 1.061 0.563

Supervisors collect performance information from other

sources (beyond their own observations) such as

peer/customer before making an assessment.

3.17 1.055 0.497

205

Procedure

for Appraisal Employees keep daily records of their own performance. 3.03 1.103 0.811 0.86

Employees keep weekly or bi-weekly records of their

own performance. 3.16 1.027 0.777

The various aspects of performance on which an

employee is assessed are appropriate. 3.11 0.951 0.561

Information

for Appraisal The appraisal system is used for demotion decisions. 2.90 0.932 0.790

0.74

The appraisal system is used for firing decisions. 2.85 0.889 0.768

Note: Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization (.92) and Bartlett test

(Chi-square) 9367.945

206



namely perceptions of performance appraisal, assessment of performance, training on

appraisal, ratings on performance, aspects of appraisal, procedure for performance,

information for appraisal and appraisal for decisions. The results are presented in Table

4.12.

For this study, correlation analysis was conducted to assess the appropriateness of factor

analysis under the factors perceptions of performance appraisal, training on appraisal,

ratings on performance, aspects of appraisal, record of performance, procedure for

appraisal, and information for appraisal and showed a positive correlation among all the

measurement items, significant at the 0.01 level and was suitable for factor analysis

(Hair et al., 2006).

207

Table 4.12 Inter-correlations of Perceptions of performance appraisal, Training on appraisal, Ratings of performance, Aspects of appraisal

Record of performance, Procedure for appraisal and Information for appraisal

1 2 3 4 5 6 7

1 Perception of performance

appraisal

2 Training on appraisal .698**

3 Ratings on performance .499** .461**

4 Aspects of appraisal .673** .665** .440**

5 Record of performance .512** .550** .425** .501**

6 Procedure for appraisal .402** .467** .322** .342** .520**

7 Information for appraisal .420** .303** .188** .247** .349** .191**

208


For this study regression analysis was performed between seven factors of performance

appraisal, namely perceptions of performance appraisal, training on appraisal, ratings on

performance, aspects of appraisal, record of performance, procedure for appraisal and

information for appraisal as dependent variables and demographic characteristics age,

gender, education, grade of respondent and length of service as independent variables

using SPSS-19. It can be seen from Table 4.13 that the factor training on appraisal had a

significant relationship with education (β= -.096, p< 0.10), and grade of respondent (β=

-.115, p< 0.10). A significant relationship was also found between the demographic

variable grade of respondent and ratings on performance (β=.182, p< 0.01), and record

of performance (β=.130, p< 0.05). Similarly, a significant relationship was found

between the factor aspects of appraisal and education (β= -.129, p< 0.05). The results

show an association between the demographic variables and performance appraisal.

These analyses provide support for Hc.

209

Table 4.13 Regression Analysis for Performance Appraisal System

Perceptions on

performance

appraisal

Training on

appraisal

Ratings on

performance

Aspects of

appraisal

Record of

performance

Procedure

for

appraisal

Information

for appraisal

Model

(Constant) 2.927

(11.66)

3.148

(12.77)

2.799

(11.48)

3.334

(13.39)

3.143

(12.75)

3.261

(9.63)

2.893

(11.47)

Age -.048 .004 .003 -.041 .006 -.117 .067

(-.600) (-0.04) (-0.41) (.-51) (-0.07) (-1.45) (-0.85)

Gender .035 -.033 .060 .002 -.028 -.003 .004

(-.68) (-.64) (-1.20) (-0.04) (-.56) (-.05) (-0.08)

Education -.068 -.096* -.009 -.129** -.079 -.054 -.080

(-1.17) (-1.66) (-.15) (-2.22) (-1.36) (-.92) (-1.40)

Grade of

Respondent

.060 .115* .182*** .079 .130** .051 -.059

(-.98) (-1.89) (-3.04) (-1.30) (-2.13) (-0.83) (-.98)

Length of

Service

.084 -.021 -.011 .039 .000 .051 .132

(-1.06) (-.26) (-.13) (-0.49) (-0.00) (-0.64) (-1.69)

Notes: t-values in parenthesis are presented.

R2 (.009); (.012); (.039); (.013); (.013); (.009) (.040); ***p < 0.01, ** p < 0.05 and *p < 0.10

210

4.6.5 Discussion on Performance Appraisal System

Appraisal programs are widely used in organisations for a variety of reasons such as

promotions and transfers, as well as to evaluate developmental needs of staff (Ahmed et

al., 2010). Studies were found on performance appraisal (e.g. the effect of performance

appraisal results on the personnel’s motivation and job promotion by Hamidi et al.

(2010), Performance appraisals impact on attitudinal outcomes and organisational

performance by Ahmed et al. (2010), impact of performance appraisal on employee

motivation by Jabeen (2011) and justice perceptions of performance appraisal practices

by Thurston and McNall (2010).

The aim of this study was to analyze the underlying factor structure of performance

appraisal and to develop a theoretical framework to better understand employee

perceptions of the performance appraisal system in relation to the human resource

management practices. Organisational leaders with a better understanding of

employees’ perceptions about performance appraisal systems and processes can modify

their performance appraisal practices so that employees believe systems and processes

are fair and informative (Thurston & McNall, 2010). The findings of this study help to

identify the way in which performance appraisal is perceived by employees through

looking at the factors impacting on the structure of performance appraisal. The analysis

revealed seven key factors of which four were identified as influencing performance

appraisal (i.e. training on appraisal, ratings on performance, aspects of appraisal and

records of performance) and found to be related to the independent variables (i.e.

education and grade).

211

The findings identified that education has influence on training on appraisal and aspects

of appraisal. The appraisals should be designed in a way that encourages the appraiser

to look into the employee characteristics such as intuitiveness, level of confidence and

job interests towards achieving goals for organisational success (Mundhra & Jacob

2011). These characteristics could be developed in an employee through a well designed

system of appraisal and provide motivation to remain with the organisation (Mundhra &

Jacob 2011).

Result of the three constructs of performance appraisal, training on appraisal, ratings on

performance and records of performance, showed that grade influences employee

perceptions such as salaries, pay and promotions. This is supported by the literature

which indicates that performance appraisal identifies and rewards skilled employees

(Saibou, 2011), so a well rewarded person may have more confidence in the process of

appraisal. However, the process of appraisal can also create frustration and

dissatisfaction when employees perceived bias (Skarlicki & Folger, 1997). Despite this,

a carefully designed and implemented appraisal system can accommodate the goals of

employees and the organisation and provide the organisation with a more accurate

picture of employee capabilities and contribution to the organisation.

The results of the study indicated that grade of the respondent has influence on training

on appraisal, ratings on performance and records of performance. This means that the

higher the grade the more familiarity the employee has with the performance appraisal

systems. Employee’s who hold higher positions have more experience and

understanding of the appraisal process and are therefore more motivated and confident

participating in the process. Therefore results suggest a link between grade and

212

performance appraisals. This is supported by Lawler (1969) who recognized the

importance of intrinsic and extrinsic motivation in appraisal systems. Evidence from the

earlier studies of Saibou (2011), Brown and Benson (2003), and Brown and Hewood

(2005) found that this suggests one way to enhance the effectiveness of employees is to

involve them in developmental programs such as training. If an employee is given

appropriate training from their immediate supervisors, it will likely result in an

improved assessment which will then impact on employee motivation and performance

(Jabeen, 2011). However, performance appraisal affects both employee motivation and

satisfaction positively and negatively. Performance appraisals offer the opportunity for

appraisers and employees to recognize existing problems, recognize developmental and

training needs and encourage better performance (Mehta, 2014).

The results of this study align with the findings of Mehta (2014) that performance

appraisal is important in motivating the employees desire to perform better. This study

is also supported by Khan, Chandio, and Farooqi (2014) who state that performance

appraisal is important for career succession and development and evaluating job

performance. Thus appraisals help organisations to assess individuals’ performance with

respect to their job requirements, setting job standards and providing feedback to the

employee (Jabeen, 2011; Khan et al., 2014; Varkkey, Koshy, & Oburai, 2008).

The findings are also consistent with those of Kurland and Egan (1999) and Heponiemi

et al. (2011) that public sector employees have been found to perceive a lower level of

organisational justice than private sector employees due to different decision-making

procedures, work processes, and competing goals (Rainey, 2009). The importance of

performance appraisal in public sector universities is therefore widely acknowledged

213

(Mehta, 2014). The findings of the present study as discussed earlier were that

education and grade of the respondent exert influence on performance appraisal in

public sector universities. This will help management to form a better understanding of

the appraisal process. Consequently, management will be well placed to reduce turnover

and demotions of qualified employees and provide developmental programs and

training for career advancement within universities. Ahmed et al. (2010) agree that

performance appraisal is used for rewards such as promotions, as well as retentions.

Kavussi (1999) considers appraisal as a control process in administration and an

essential factor in HRM which helps in improving the quality and quantity of the

employee’s performance. Furthermore, the literature supports the findings that the

annual planning of an appraisal is an integral process in the public sector which requires

a significant investment of money and time to achieve the desired objectives. These

include personal development, career advancement, determination of punishment and

rewards, measurement of performance output and identification of educational needs of

an employee (Hamidi et al., 2010). In order to achieve these objectives, organisations

need such catalyst appraisal systems, where employees must have sufficient information

about their deficiencies, regular feedback for improvement of their performance and

ways to turn their weaknesses into strengths. Conducting appraisals in the public sector

for both administrative and developmental purposes is of vital importance because

knowing employees past performance is necessary in order to enhance functioning of

the organisations’ appraisal system (Saibou, 2011).

The findings of the study showed that three constructs out of seven i.e. perceptions of

performance appraisal, procedure for appraisal and information for appraisal have no

effect on the independent variables. However, the literature says appraisal systems can

214

play a role in recognizing employee talents and capabilities (Skarlicki & Folger, 1997)

and describes performance appraisal as being just window dressing. It can be a

formality that does not achieve the desired results and is even a waste of time and

resources with the decisions made achieving unintended consequences (Mirsepassi,

1999), and may even have grown in importance as the influence of managerial unions

began to increase (Margerison, 2001).

Based on the theoretical background and findings a hypothesis was tested to establish

whether there is a positive and significant relationship between demographic variables

and performance appraisal. The findings provide confirmation of the hypothesis and

support the results of the factor structure of performance appraisal. As hypothesized,

demographic variables were partially associated with performance appraisal. From the

senior management’s point of view performance appraisal is considered an important

part of the management system because of its acceptance and recognized benefits

(Mehta, 2014). Therefore, it was important to understand the factor structure of

performance appraisal; identifying both scholars and practitioners assumptions

regarding employee perception on performance appraisal, as performance appraisal is a

system which identifies the deficiencies, motivates employees and assesses employee

performance with respect to their job requirement (Khan et al., 2014).


In order to determine whether the national culture (NC) had a valid factor structure

factor analysis (FA), correlation analysis (CA), regression analysis (RA), and

multivariate analysis of variance (MANOVA) were applied to examine the NC factorial

structure and to ascertain convergent reliability and variability of the relationship

215

according to the data collected from respondents within the Pakistani public sector

universities.

To examine the national culture’s dimensions, the following hypothesis was proposed

and tested:

Hypothesis (Hd): The factor structure of national culture are interrelated, multi-



Factor analysis was employed to ascertain dimensions of national culture. The results

depicted a solution with three factors. Once the matrix was considered factorable, the

eigenvalues and percentage of explained variance of each factor were then examined in

order to determine the quantity of factors to be extracted. After, the factor loadings

obtained from the factor analysis were further considered to test and to eliminate the

items with no significant loading. One item namely, question (11) “A specific religious

philosophy is not an important part of being Pakistani,” were removed for its low

significance value. The removal of this item led to three factors with seven items in

factor one labelled as national/cultural heritage, five items in the second factor labelled

employee ethnocentrism and four items in the third factor labelled as belief system.

Once again factor analysis was carried out after removing one item (results with the

three factors are shown in Table 4.14). Factors that contributed eigenvalue >1.0 were


2007). The result of this study exhibited eigenvalues >1.0 for three components i.e.

216

national/cultural heritage (6.194), employee ethnocentrism (1.833) and belief system

(1.341). These three components explained total variance of 58.551%, and the solution

explained 38.712 cumulative percent of the variance and 58.552 cumulative percent for

components. Hair et al. (2006) suggested that lower communality identifies that an item

does not fit well with other items in the same component. Communality lower than 0.5

(50%) are considered to be weak items (Hair et al., 2006). In this study total

communalities of each item were greater than 0.5; all communalities were noted (1.0.)

for each item which are higher than the recommended value. Norusis (1992)

recommended the Kaiser-Meyer-Olkin (KMO) test to measure sampling adequacy and

Bartlett’s test of Sphericity to achieve appropriate factor analysis results. Tabachnick

and Fidell (2007) suggested that a value of KMO greater than 0.6 is statistically

significant and is suitable for factor analysis to provide a discreet set of factors, and

Bartlett’s test of sphericity indicates that correlations among the measurement items

higher than 0.3 are suitable for factor analysis (Hair et al., 2006).






(national/cultural heritage), 0.82 for factor two (employee ethnocentrism), and 0.77 for

factor three (belief system); that signifies the reliability of the measures. Cronbach’s α is

easier to calculate and is a well-accepted measure within research (Nunnally, 1978;

Tabachnick & Fidell, 2007). Generally, Cronbach’s α coefficient 0.70, is acceptable,

however, it may be accepted at 0.60 (Sekaran, 2000).

217

After using factor analysis three factors emerged as seen in Table 4.14. Factors loaded


national/cultural heritage that consisted of seven items. The second factor namely,

employee ethnocentrism, ranged from 0.568 to 0.802 and consisted of five items. The

third factor namely, belief system, ranged from 0.678 to 0.777 (Henseler et al., 2009; &

Churchill, 1979). The factor loading was above the minimum threshold criterion 0.4

(Hair et al., 2006). Each factor has a Cronbach’s alpha range from 0.77 to 0.85 which is

above 0.60 and satisfied the requirements of the psychometric reliability test (Hair et al.,

2006). All values exceed the recommended threshold 0.70 (Sekaran, 2000) indicating

good internal consistency among the items within each dimension, each variable, and

the entire scale.


National/Cultural Heritage

Factor one, national/cultural heritage, showed that the question “Pakistan has a strong

historical heritage” has a high factor loading (0.797). The inspection of the factor

loadings indicates that each of the variables loading was >0.526 on the national/cultural

heritage. The highest factor loading indicates the highest explanatory power in the

national/ cultural heritage factor.

Employee Ethnocentrism

Factor two, employee ethnocentrism, indicates the question “It is always best to enrol in

Pakistani educational institutes” has a high factor loading (0.802). An examination of

the factor loadings showed that each of the variables loaded was >0.568 on employee

218

ethnocentrism much higher than on national/cultural heritage, and the highest factor

loading indicates greater explanatory power.

Belief System

Factor three, belief system, shows that the question “Religious education is essential to

preserve the cohesiveness of the Pakistan society” has a high factor loading (0.777). An

examination of the factor loadings indicates that each of the variables loading on belief

system is lower than on national/cultural heritage and employee ethnocentrism.

219

Table 4.14 Descriptive Statistics, Factor Loadings, and Reliability of National/Cultural Heritage, Employee Ethnocentrism and Belief System.


Alpha

National/ Cultural

Heritage Pakistan has a strong historical heritage. 3.99 0.962 0.797 0.85

One of the Pakistan's strengths is that it emphasizes events

of historical importance. 3.41 1.043 0.757

Important people from the country's past are admired by

people today. 3.48 1.069 0.756

Pakistan in general feels that they come from a common

historical background. 3.55 0.991 0.689

A Pakistani possesses certain cultural attributes that other

people do not possess. 3.68 0.987 0.605

Pakistani is proud of their nationality. 3.69 1.216 0.557

People frequently engage in activities that identify them as

Pakistani. 3.45 1.116 0.526

220

Employee

Ethnocentrism

It is always best to enrol in Pakistani educational

institutes. 3.19 1.198 0.802 0.82

We should take admissions in our local universities

instead of other /outside universities. 3.16 1.279 0.787

People should only go abroad if choice for field of study

is unavailable in the Pakistan. 3.3 1.269 0.741

Pakistani people should not go abroad for jobs because it

is loss for Pakistan in terms of brain drain which effects

country development.

3.15 1.288 0.728

It may cost me in the long run but I prefer to support

Pakistani academics. 3.60 1.269 0.568

Belief System Religious education is essential to preserve the

cohesiveness of the Pakistan society. 3.53 1.119 0.777 0.77

It is impossible for an individual to be truly Pakistani

without taking part in some form of religious activity. 2.94 1.139 0.705

A specific religious philosophy is what makes a person

uniquely Pakistani. 3.33 1.103 0.696

A true Pakistan would never reject their religious beliefs. 3.72 1.123 0.678


221



national/cultural heritage, employee ethnocentrism and belief system. The results are

presented in Table 4.15. According to Sekaran (2000) tests of hypothetical relationships

are usually categorized into two groups i.e. ‘causal’ which investigate the best or exact

relationships with cause and effect and ‘correlational’ which examines the important

construct relations associated with certain problems of domain. This study examined the

relationships between the constructs of national culture.

For this study, correlation matrix analysis was conducted to assess the appropriateness

of factor analysis under the factors national/cultural heritage, employee ethnocentrism

and belief system variables, and showed a correlation among the measurement items

higher than 0.3 for seven items and nine items lower than 0.3.

222

Table 4.15 Inter-correlations of National/Cultural Heritage, Employee Ethnocentrism and Belief System

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

1

2 0.646

3 0.434 0.477

4 0.394 0.373 0.47

5 0.452 0.486 0.484 0.55

6 0.366 0.46 0.441 0.467 0.477

7 0.397 0.462 0.422 0.404 0.469 0.622

8 0.322 0.4 0.256 0.387 0.361 0.492 0.612

9 0.184 0.253 0.078 0.326 0.237 0.268 0.336 0.496

10 0.273 0.313 0.28 0.289 0.361 0.443 0.459 0.522 0.489

11 0.192 0.25 0.138 0.249 0.156 0.268 0.196 0.227 0.155 0.135

12 0.188 0.219 0.295 0.367 0.404 0.413 0.34 0.395 0.335 0.525 0.138

13 0.197 0.252 0.207 0.241 0.302 0.327 0.28 0.323 0.355 0.254 0.2 0.228

14 0.227 0.285 0.251 0.229 0.317 0.321 0.274 0.334 0.308 0.203 0.227 0.216 0.718

15 0.205 0.221 0.231 0.203 0.267 0.345 0.351 0.264 0.236 0.279 0.219 0.225 0.498 0.456

16 0.284 0.308 0.259 0.263 0.284 0.394 0.391 0.385 0.296 0.353 0.347 0.306 0.359 0.433 0.504

17 0.225 0.199 0.144 0.226 0.19 0.221 0.233 0.275 0.25 0.248 0.138 0.138 0.451 0.477 0.502 0.417 1


223


For this study regression analysis was performed between the three factors of national

culture; namely national/cultural heritage, employee ethnocentrism and belief system as

dependent variables and demographics as independent variables using SPSS-19. It can

be seen from Table 4.16 that the factor employee ethnocentrism was significantly

related to the length of service of the respondent (β= .156, p< 0.05), and the factor

belief system had a significant relationship with education (β= -.102, p< 0.10). In this

regard results indicate that the interaction of the demographic variables and national

culture is significantly influenced and lending support to the hypothesis.

224

Table 4.16 Regression Analysis for National Culture

National/Cultural Heritage Employee Ethnocentrism Belief System

Model

(Constant) 3.752 3.366 3.647

(15.40) (11.37) (13.40)

Age 0.055 .048 -.053

(-.68) (-.59) (-.66)

Gender -0.013 .021 -.043

(-.25) (-0.41) (-.86)

Education -0.094 -.058 -.102*

(-1.63) (-1.01) (-1.77)

Grade of Respondent -0.003 -.079 .096

(-.05) (-1.30) (-1.58)

Length of Service 0.072 .156** .078

(-0.91) (-1.98) (-0.99) Notes: t-values in parenthesis are presented.

R2 (.020); (.025) and (.014); ***p < 0.01, ** p < 0.05 and *p < 0.10.

225


For this study MANOVA was used to analyse whether the dependent variables

(national/cultural heritage, employee ethnocentrism and belief system) have an effect on

the independent variables (age, gender, education, grade and length of service).



Table 4.17 shows multivariate test results that demonstrate a statistically significant

difference was found between age, gender, education, grade and length of service as the

independent variables and national/cultural heritage, employee ethnocentrism and belief

system as the dependent variables. Field (2013) considered 0.5 as significant criterion.

Using Roy’s Largest Root, two independent variables emerged as having a significant

effect on national culture; education (F= .016, p< 0.05) and length of service (F= .019,

p< 0.05). Further analysis, using Roy’s Largest Root and combining demographic

variables (independent) revealed a number of significant relationships with national

culture (dependent) namely age and length of service together has significant effect on

national culture (F= .024, p< 0.05), gender and education (F= .065, p< 0.10), gender and

length of service (F= .041, p< 0.05), education and grade of the employees (F= .005, p<

0.05), education and length of service of the employees (F= .053, p< 0.10), grade and

length of service of the employees (F= .085, p< 0.10). Age, education and grade have a

significant effect on national culture (F= .083, p< 0.10). Age, grade and length of

service of the employees together have a significant effect on national culture, Pillai's

Trace (F= .064, p< 0.10), Wilks' Lambda (F= .064, p< 0.10), Hotelling's Trace (F= .065,

p< 0.10) and Roy’s Largest Root (F= .002, p< 0.01). Similarly, education, grade and

length of service of the employees have a significant effect on national culture, Pillai's

226

Trace (F= .002, p< 0.01), Wilks' Lambda (F= .002, p< 0.01), Hotelling's Trace (F= .002,

p< 0.01), and Roy’s Largest Root (F= .000, p< 0.01).

227

Table 4.17 MANOVA for National Culture

Variable Test Name Value Approx F Hypothesis

df

Significance of

F

Education Roy's Largest Root 0.041 3.097 4 .016**

Length of service Roy's Largest Root 0.39 2.988 4 .019**

Age and Length of service Roy's Largest Root 0.065 2.176 9 .024**

Gender and Education Roy's Largest Root 0.024 2.432 3 .065*

Gender and Length of service Roy's Largest Root 0.033 2.525 4 .041**

Education and Grade Roy's Largest Root 0.056 3.412 5 .005**

Education and Length of

service

Roy's Largest Root 0.056 1.890 9 .053*

Grade and Length of service Roy's Largest Root 0.055 1.678 10 .085*

Age, Education and Grade Roy's Largest Root 0.022 2.243 3 .083*

Age, Grade and Length of

service

Pillai's Trace 0.079 2.036 12 0.064*

Wilks' Lambda 0.923 2.033 12 0.064*

Hotelling's Trace 0.081 2.025 12 0.065*

Roy's Largest Root 0.04 3.065 4 0.02***

Education, Grade and Length

of service

Pillai's Trace 0.066 3.447 6 .002***

Wilks' Lambda 0.934 3.494 6 .002***

Hotelling's Trace 0.071 3.540 6 .002***

Roy's Largest Root 0.70 7.056 3 .000***

Note: ***p < 0.01, **p < 0.05 and *p < 0.10.

228


be seen from Table 4.18 that there was significant effect of education on the belief

system (F= .025, p<.05). A significant effect of length of service on belief system (F=

.029, p<.05) was also found. Significant difference level was found in the effect of age

and length of service on national/cultural heritage and belief system (F= .073, p<.10)

and (F=.047, p<.05) respectively. The interaction of gender and grade was found to

have significant effect on the belief system (F=.044, p<.05). The interaction of gender

and length of service of the employee had significant effect on national/cultural heritage

(F=.096, p<.10). The value of (F=.031, p<.05) indicated that there was significant

effect of employee ethnocentrism on age, grade and length of service of the employee.

There was a highly significant effect of education, grade and length of service of the

employee on employee ethnocentrism (F=.004, p<.01).

There is conclusive evidence that age, gender and length of service are influencing

national/cultural heritage whereas education and grade are not. However, the results

demonstrated that age, education, grade and length of service of employee are

influencing employee ethnocentrism and gender is having no influence on employee

ethnocentrism. There is also evidence that age, gender, education, grade and length of

service of employee are influencing belief system. Therefore, the above analyses

support Hd.

229


Independent

Variable

Dependent

Variable

Type III

Sum of

Squares

df Mean

Square F Sig

Gender × Length

of service

National/Cultural

Heritage 4.444 4 1.111 1.993 .096*

Age × Length of

service

National/Cultural

Heritage 8.877 9 0.986 1.769 .073*

Belief system 12.173 9 1.353 1.931 .047**

Gender × Grade Belief System 4.422 2 2.211 3.157 .044**

Education Belief System 7.919 4 1.98 2.827 .025**

Length of service Belief System 7.662 4 1.916 2.735 .029**

Age × Grade ×

Length of service

Employee

Ethnocentrism 9.083 4 2.271 2.701 .031**

Education ×

Grade × Length of

service

Employee

Ethnocentrism 9.656 2 4.828 5.744 .004***

Notes: ***p< 0.01, **p <0.05 and p<0.10


b. R Squared = .320 (Adjusted R Squared = .059)

c. R Squared = .322 (Adjusted R Squared = .063)

230

4.7.6 Discussion on National Culture

National culture has a significant influence on an employee’s performance both directly,

through cultural norms, beliefs, attitudes and values, and also indirectly through its

impact on organisational HRM practices (Delaney & Hussield, 1996). The purpose of

this study was to examine the perceptions of employees on national culture; explore the

underlying factor structure of national culture and to identify the relationship between

national culture and demographic variables. While the review of literature identified that

social and economic similarities are growing between nations, through multiculturalism

and globalisation, there are still significant differences between nations arising from

their parochial and culture based values (McGaughey & De Cieri, 1999). Therefore

understanding national context is very important, particularly the socio cultural context,

economic and legal elements and the political environment (Leat & El-Kot, 2007).

National culture has received little research attention in the public sector universities in

developing countries.

Previous research of Leat and El-Kot (2007), Sparrow et al. (2004), Quintanilla and

Ferner (2003), Budhwar and Sparrow (2002) and Hall and Soskice (2001) identified that

national factors (i.e. economics, governance, financial, legal and trade unions) together

with HR practices form the national business system. In explaining the national system

of HR, researchers have focused on national, institutional and cultural environments to

better understand the way that HR practices are affected within national frameworks.

Therefore, it was important to further explore the factor structure of national culture and

in doing so identify both managerial and employee cultural norms reflecting basic

values and assumptions of the national culture within nationalized boundaries.

231

The literature shows that cultural differences have a great influence on individual

perceptions and preferences (Laurent, 1986), which impact on organisational and

individual behaviour. This is important in HRM due to the strong role of national

culture in shaping the values and beliefs of individuals in ways that are specific to the

culture during childhood (Beck & Moore, 1985) and is relatively hard to change

(Newman & Nollen, 1996). It is therefore important in looking at a developing country

like Pakistan to explore how the factor structure of national culture helps senior

managers in understanding norms and beliefs amongst employees and also helps in

identifying what cultural aspects are important to consider when designing

organisational policies.

The findings of the factor structure of national culture help to identify employee

perceptions of national culture and how national culture influences outcomes within an

organisation. Three factors of national culture in the study i.e. national/heritage culture,

employee ethnocentrism and belief system were found to be associated with

demographic variables i.e. age, gender, education, grade and length of service. This

concurs with earlier findings by Leat and El-Kot (2007) that culture influences HR

practices in recruitment and selection, job design (e.g. job descriptions), training and

development and that it also influences performance management in areas such as

rewards and performance appraisal systems (Leat & El-Kot, 2007).

Results demonstrated that age, gender and length of service of employees had a positive

impact on perceptions of national/cultural heritage. This reflects the arguments of

Delaney and Hussield (1996) who emphasise that national cultures have a significant

influence on employee’s performance. It is therefore, management’s responsibility to

232

understand the needs of their employees and the environment, and to manage cultural

diversity in terms of organisational and interpersonal practices and skills. Culture, states

Hofstede plays an integral role in distinguishing one person from another because of its

role in the “unanimous planning of the human mind” (Hofstede, 1991). This suggests

that understanding of cultural norms and values is essential for a manager’s grasp of

national culture and its influence on the effectiveness of HR practices and policies as

well as employee performance (Muduli, 2011). Understanding cultural differences has

become important because of the internationalization of the world economy and its

challenges in designing and implementing integrated HRM practices in a comparative

context (Milikic, 2009; Ricks et al., 1990). Since, national culture has been shown to be

determined by the factor structure, authorities of the public sector should establish

policies to facilitate employees to perform well within organisations.

Secondly, the findings of the study revealed that age, education, grade and length of

service have an influence on employee ethnocentrism. Which mirrors previous research

indicating that understanding an employee’s social or cultural group is necessary for

better coordination of employee activities Wolff and Pooria (cited in Festing, 2006)

likewise argued that cultural socialization influenced governance structures and impacts

the coordination of employees’ action through working terms and conditions.

Thirdly, results of the study showed that age, gender, education, grade and length of

service do have an influence on the belief system. It shows that understanding

employees’ beliefs within an organisation with regard to national culture is very

important, and can help managers to designing HRM policies which suit the national

culture. Every organisation operates in a cultural context that imparts beliefs and norms

233

affecting their functioning and has internal policies and structures that correspond with

their national culture, resources and market. The international research on HRM has

shown that cultural differences have a great influence on individual perceptions and

preferences (Laurent, 1986) which are exhibited through a preference for different types

of rewards and job characteristics. For example, the literature shows that in developing

countries, workers value monetary benefits over extra holidays as recognition that their

work is appreciated by employers. These preferences impact on individual behaviour

that then influences organisational behaviour (Hofstede, 1980a; Rollinson & Broadfield,

2002). Hofstede (1980a) stressed that managerial values and beliefs need to vary to suit

cultural context and that this requires management practices to be adaptable and diverse

because all national cultures are different. Each society is different and the literature

notes that different organisational practices and management styles can be observed

between cultures due to the differences of national frameworks (Hofstede, 1980a;

Jackson, 2002; Trompenaars, 1993). This difference is because the cultural environment

impacts on the organisations within to satisfy nationalized viewpoints. The literature

also observes that this impact extends to HRM practices with cultural beliefs within

national boundaries observably reflected in HRM practices, because, the cultural beliefs

and basic assumptions of the individual who has been shaped by the national culture, is

translated into the expectations and needs of the employees of an organisation (Myloni

et al., 2004).

Myloni et al. (2004), Fay (1996) and Lukes (1973) also note the influence of social

systems within different cultures that in turn “constrain and guide” the people who

make up institutions within that social system. These authors also stated that, it can be

difficult for a unionized company to implement standardized HRM practices across all

234

cultures because what may be seen as beneficial in one culture will not be seen as

beneficial in another (Beechler & Yang, 1994) and lead to workplace conflict in the host

country. For this reason management practices need to change to suit the host culture

(Khilji, 2002).

In summary the present study establishes the factor structure of national culture for

authorities and employees in the public sector. It adds to the body of literature on

employee perceptions of national culture by investigating administrative employees and

revealed three factors with highly correlated variables. Based on the theoretical

background and findings of the study a hypothesis was tested and established a positive

and significant relationship between demographic variables and national culture. The

findings provide confirmation of the hypothesis and significant support for the earlier

studies of Jackson (2002), Delaney and Hussield (1996), and Hofstede (1980a) which

identified the influence of national culture on management practices and employee

performance in a particular cultural environment.

The results of the current study provide insights for understanding national culture. This

knowledge will assist organisations in designing efficient systems, with the best

available talent through recognizing their cultural values, their ethnocentrism and

beliefs. Recognising these aspects encourages better employee performance whilst

providing them with a learning culture that ultimately helps the success of the

organisations. Given the objectives of this study, the results strengthen the knowledge of

university management of the consequences of the factor structure of national culture.

235


In order to determine the dimensions of organisational culture (OC) in public sector

universities in Pakistan, factor analysis (FA), correlation analysis (CA), regression

analysis (RA), and multivariate analysis of variance (MANOVA) were applied to

examine the OC factorial structure and to ascertain convergent reliability and variability

of the relationship according to the data collected from respondents within the Pakistani

public sector universities.

In order to examine the dimensions of organisational culture, the following hypothesis

has been tested:

Hypothesis (He): The factor structure of organisational culture are interrelated, multi-



Factor analysis was performed to establish dimensions of organisational culture. The

results depicted a solution with three factors. Once the matrix was considered

factorable, the eigenvalues and percentage of explained variance of each factor were

then examined in order to determine the quantity of factors to be extracted (results with

the three factors are shown in Table 4.19). Factors that contributed eigenvalue >1.0

were significant and the remaining were not taken into consideration (Tabachnick &

Fidell, 2007). The result of this study exhibited eigenvalues >1.0 for three components

i.e. strategic emphasis (12.084), organisational leaders (1.453) and dominant

characteristics (1.023). These three components explained total variance of 60.6%

which is higher than the recommendations. 60% or above cumulative variance satisfies

236

the criterion of variance percentage (Hair et al., 2006). This solution explained 50.351

cumulative percent of the variance and 60.667 cumulative percent for components. Hair

et al., (2006), suggested that lower communality identifies that an item does not fit well

with other items in the same component. Communality lower than 0.5 (50%) are

considered to be weak items (Hair et al., 2006). In this study total communalities of

each item were greater than 0.5; all communalities were noted (1.0.) for each item

which were higher than the recommended value. Norusis (1992) recommended the

Kaiser-Meyer-Olkin (KMO) test to measure sampling adequacy and Bartlett’s test of

Sphericity to achieve appropriate factor analysis results. Tabachnick and Fidell (2007)

suggested that a value of KMO greater than 0.6 is statistically significant and is suitable

for factor analysis to provide a discreet set of factors, and Bartlett’s test of sphericity

indicates that correlations among the measurement items higher than 0.3 are suitable for

factor analysis (Hair et al., 2006).






(strategic emphasis), 0.91 for factor two (organisational leaders) and 0.72 for factor

three (dominant characteristics); that signifies the reliability of the measures.

Cronbach’s α is easier to calculate and is a well-accepted measure within research

(Nunnally, 1978; Tabachnick & Fidell, 2007). Generally, Cronbach’s α coefficient 0.70,

is acceptable, however, it may be accepted at 0.60 (Sekaran, 2000).

237

After using factor analysis three factors emerged as seen in Table 4.19. Factors loaded

from the factor analysis ranged from 0.424 to 0.743 for the first factor, namely strategic

emphasis that consisted of thirteen items. The second factor namely, organisational

leaders, ranged from 0.532 to 0.759 and consisted of eight items. The third factor

namely, dominant characteristics, ranged from 0.499 to 0.774 that consisted of three

items (Henseler et al., 2009; Churchill, 1979). The factor loading was above the

minimum threshold criterion 0.4 (Hair et al., 2006). Each factor has a Cronbach’s alpha

range from 0.72 to 0.91 which is above 0.60 and satisfied the requirements of the

psychometric reliability test (Hair et al., 2006). All values exceed the recommended

threshold 0.70 (Sekaran, 2000) indicating good internal consistency among the items

within each dimension, each variable, and the entire scale.


Strategic Emphasis

Factor one, strategic emphasis, showed that the question “the organisation emphasizes

human development. High trust, openness and participation persist” has a high factor

loading (0.743). The inspection of the factor loadings indicates that for each of the

variables loading was >0.424 on the strategic emphasis. The highest factor loading

indicates the highest explanatory power in the strategic emphasis factor.

Organisational Leaders

Factor two, organisational leaders, showed that the question “the leaders of the

organisation are generally considered to be entrepreneurs, innovators, or risk takers” has

a high factor loading (0.759). An examination of the factor loadings indicates that each

238

of the variables loading on organisational leaders are much higher than on strategic

emphasis, and the highest factor loading indicates greater explanatory power.

Dominant Characteristics

Factor three, dominant characteristics, showed that the question “the organisation is a

very dynamic and entrepreneurial place. People are willing to stick their necks out and

take risks” has a high factor loading (0.774). An examination of the factor loadings

indicates that each of the variables loading on dominant characteristics are much higher

than on strategic emphasis and organisational leaders and the highest factor loading

indicates greater explanatory power.

With the exception of “the organisation is a very formalized and structured place,

bureaucratic procedures generally govern what people do”. All factors show a high level

of explanatory power. This factor has a lower factor loading (0.499) which indicates a

low descriptive power.

239

Table 4.19 Descriptive Statistics, Factor Loadings, and Reliability of Strategic Emphasis, Organisational Leaders and Dominant

Characteristics.


Alpha

Strategic

Emphasis The organisation emphasizes human development. High trust, openness and participation

persist. 3.27 1.083 0.743 0.90

The organisation defines success on the basis of development of human resources,

teamwork, and concern for people. 3.36 1.047 0.733

The organisation emphasizes permanence and stability. Efficient, smooth operations are

important. 3.48 0.956 0.731

The organisation defines success on the basis of having the most unique or the newest

products. It is a product leader and innovator. 3.31 1.004 0.72

The organisation defines success on the basis of market penetration and market share.

Competitive market leadership is key. 3.29 0.997 0.705

The organisation emphasizes acquiring new resources and meeting new challenges. Trying

new things and prospecting for new opportunities are valued. 3.43 0.976 0.7

The organisation defines success on the basis of efficiency. Dependable delivery, smooth

scheduling, and low cost production are critical. 3.43 0.976 0.675

The spirit that holds the organisation together is formal rules and policies. Maintaining a

smooth running organisation is important. 3.38 1.025 0.625

The spirit that holds the organisation together is the emphasis on production and goal

accomplishment. Marketplace aggressiveness is a common theme. 3.51 1.014 0.619

The spirit that holds the organisation together is orientation toward innovation and

development. There is an emphasis on being on the cutting edge. 3.22 0.976 0.577

The organisation is very production oriented. A major concern is with getting the job done.

People are very competitive and achievement oriented. 3.30 0.932 0.513

The spirit that holds the organisation together is loyalty and mutual trust. Commitment to

this organisation runs high. 3.35 1.008 0.508

The organisation emphasizes competitive actions and achievement. Measurement targets and

objectives are dominant. 3.47 2.208 0.424

240

Organisational

Leaders

The leaders of the organisation are generally considered to be

entrepreneurs, innovators, or risk takers. 3.25 1.01 0.759 0.91

The leaders of the organisation are generally considered to be hard-drivers,

producers, or competitors. 3.30 1.006 0.744

The leaders of the organisation are generally considered to be mentors,

facilitators, or parent figures. 3.38 1.06 0.698

The management style in the organisation is characterized by hard-driving

competitiveness, goal directedness, and achievement. 3.31 1.031 0.622

The leaders of the organisation are generally considered to be coordinators,

organizers, or efficiency experts. 3.44 1.081 0.612

The management style in the organisation is characterized by individual

risk-taking, innovation, flexibility, and uniqueness. 3.15 1.039 0.596

The management style in the organisation is characterized by teamwork,

consensus and participation. 3.44 1.072 0.537

The management style in the organisation is characterized by careful

monitoring of performance, longevity in position, and predictability. 3.34 1.031 0.532

Dominant

Characteristics

The organisation is a very dynamic and entrepreneurial place. People are

willing to stick their necks out and take risks. 3.13 1.003 0.774 0.72

The organisation is a very special place. It is like an extended family.

People seem to share a lot of themselves. 3.57 1.078 0.754

The organisation is a very formalized and structured place. Bureaucratic

procedures generally govern what people do. 3.28 1.037 0.499


241



namely strategic emphasis, organisational leaders and dominant characteristics. The

results are presented in Table 4.20. According to Sekaran (2000) tests of hypothetical

relationships are usually categorized into two groups i.e. ‘causal’ which investigate the

best or exact relationships with cause and effect and ‘correlational’ which examines the

important construct relations associated with certain problems of domain. This study

examined the relationships between the constructs of organisational culture.


of factor analysis under the factors strategic emphasis, organisational leaders and

dominant characteristics, and showed a correlation among the measurement items

higher than 0.3 for 21 items and was suitable for factor analysis (Hair et al., 2006).

Three items namely “The organisation emphasizes acquiring new resources and meeting

new challenges. Trying new things and prospecting for new opportunities are valued”;

“The organisation emphasizes permanence and stability. Efficient, smooth operations

are important” and “The organisation defines success on the basis of having the most

unique or the newest products. It is a product leader and innovator” showed low

correlations of 24 items.

242

Table 4.20 Inter-correlations of Strategic Emphasis, Organisational Leaders and Dominant Characteristics

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

1

2 .628

3 .436 .540

4 .366 .391 .466

5 .454 .398 .519 .404

6 .382 .441 .560 .378 .711

7 .317 .413 .565 .372 .609 .726

8 .431 .447 .500 .399 .599 .647 .700

9 .396 .428 .513 .314 .459 .427 .542 .546

10 .333 .453 .460 .341 .479 .487 .479 .388 .551

11 .353 .429 .519 .285 .566 .548 .574 .537 .582 .587

12 .426 .458 .570 .393 .569 .585 .565 .485 .575 .580 .587

13 .445 .494 .543 .322 .513 .507 .560 .532 .516 .495 .487 .587

14 .380 .489 .579 .303 .443 .497 .492 .491 .456 .431 .522 .610 .640

15 .370 .412 .557 .388 .446 .498 .539 .544 .493 .376 .479 .532 .569 .594

16 .411 .384 .568 .348 .474 .436 .530 .528 .496 .382 .450 .502 .522 .483 .599

17 .413 .424 .566 .336 .551 .548 .512 .562 .467 .419 .547 .510 .554 .586 .549 .621

18 .293 .320 .558 .296 .500 .561 .576 .583 .512 .367 .521 .507 .505 .478 .559 .538 .703

19 .065 .096 .274 .107 .278 .246 .275 .213 .179 .158 .266 .207 .193 .227 .251 .280 .296 .326

20 .327 .265 .505 .243 .509 .542 .501 .535 .478 .362 .488 .491 .552 .490 .570 .559 .599 .653 .320

21 .466 .371 .605 .319 .543 .546 .497 .519 .477 .426 .532 .559 .516 .554 .556 .556 .714 .610 .290 .650

22 .265 .315 .482 .273 .463 .428 .465 .425 .385 .401 .486 .496 .515 .504 .496 .476 .554 .519 .229 .556 .612

23 .325 .379 .501 .320 .501 .462 .527 .545 .352 .434 .528 .499 .479 .522 .494 .466 .641 .546 .263 .553 .608 .656

24 .358 .430 .602 .385 .483 .473 .612 .554 .534 .426 .559 .535 .558 .571 .562 .563 .624 .635 .298 .542 .593 .561 .666 1.000

Note: Correlation is significant at the 0.01 level (one tailed).

243


A regression analysis was performed between the three factors of organisational culture,

namely strategic emphasis, organisational leaders and dominant characteristics, as

dependent variables and demographics as independent variables using SPSS-19. It can

be seen from Table 4.21 that the factors strategic emphasis and organisational leaders

had a significant relationship with education (β= -.145, p< 0.05), and (β= -.129, p<

0.05) respectively. In this regard the results indicate that the interaction of the

demographic variables and organisational culture is significantly influenced and lending

support to the hypothesis.

244

Tabl2 4.21 Regression Analysis for Organisational Culture

Strategic Emphasis Organisational

Leaders

Dominant

Characteristics

Model

(Constant) 3.689 3.276 3.62

(14.74) (14.54) (13.79)

Age 0.049 .009 .102

(-0.61) (-0.10) (-1.27)

Gender 0.004 -.033 -.030

(-0.08) (-.65) (-.601)

Education -.145** -.129** -.085

(-2.51) (-2.23) (-1.47)

Grade of

Respondent

.079 .091 .012

(-1.30) (-1.50) (-0.20)

Length of Service -.038 -.028 -.035

(-.483) (-.349) (-.446)

Notes: t-ratios in parenthesis are presented.

R2 (.016); (.014) and (.011); ***p < 0.01, ** p < 0.05 and *p < 0.10.

245



(strategic emphasis, organisational leaders and dominant characteristics) have an effect

on the independent variables (age, gender, education, grade and length of service).




difference was found between gender, age, education, grade and length of service as

independent variables and strategic emphasis, organisational leaders and dominant

characteristics as dependent variables. Field (2013) considered 0.5 as significant

criterion. Using Roy’s Largest Root, two independent variables emerged as having

significant affect on organisational culture; education (F= .065, p< 0.10) and grade (F=

.091, p< 0.10). Further analysis, using Roy’s Largest Root and combining demographic

variables (independent) revealed a number of significant relationships with

organisational culture (dependent) namely age and gender together has significant effect

on organisational culture (F= .017, p< 0.05), age and education (F= .055, p< 0.10),

gender and grade (F= .026, p< 0.05), gender and length of service of employee (F=

.011, p< 0.05), age, education and grade together have significant effect on

organisational culture (F= .063, p< 0.10). Age and grade together have a significant

effect on organisational culture, Pillai's Trace (F= .095, p< 0.10), Wilks' Lambda (F=

.095, p< 0.10), Hotelling's Trace (F= .095, p< 0.10) and Hotelling's Trace (F= .018, p<

0.05). Similarly, age, grade and length of service of employee together have a

significant effect on organisational culture, Pillai's Trace (F= .081, p< 0.10), Wilks'

Lambda (F= .081, p< 0.10), Hotelling's Trace (F= .082, p< 0.10) and Roy’s Largest

246

Root (F= .013, p< 0.05). Also education, grade and length of service of employee

together have a significant effect on organisational culture, Pillai's Trace (F= .009, p<

0.05), Wilks' Lambda (F= .009, p< 0.05), Hotelling's Trace (F= .009, p< 0.05) and

Roy’s Largest Root (F= .002, p< 0.01).

247

Table 4.22 MANOVA for Organisational Culture

Variable Test Name Value Approx F Hypothesis df Significance of F

Education Roy's Largest Root 0.03 2.239 4 .065*

Grade Roy's Largest Root 0.022 2.178 3 .091*

Age and Gender Roy's Largest Root 0.034 3.441 3 .017**

Age and Education Roy's Largest Root 0.036 2.1.90 5 .055*

Gender and Grade Roy's Largest Root 0.031 3.136 3 .026**

Gender and Length of

service


Age Education and Grade Roy's Largest Root 0.024 2.453 3 .063*

Age and Grade Pillai's Trace 0.960 1.420 21 .095*

Wilks' Lambda 0.907 1.430 21 .095*

Hotelling's Trace 0.100 1.429 21 .095*


Age, Grade and Length of

service

Pillai's Trace 0.063 1.618 12 .081*

Wilks' Lambda 0.938 1.618 12 .081*



Education, Grade and

Length of service

Pillai's Trace 0.055 2.871 6 .009**

Wilks' Lambda 0.945 2.885 6 .009**

Hotelling's Trace 0.058 2.900 6 .009**


Note: ***p < 0.01, ** p < 0.05 and *p < 0.10.

248


be seen from Table 4.23 that there was significant effect of education on the

organisational leaders (F=.066, p<.10). A significant effect of age and gender combined

on dominant characteristics (F=.045, p<.05) was found. Significant difference level was

found in the effect of age and grade on organisational leaders and dominant

characteristics (F=075, p<.10) and (F=.034, p<.05) respectively. The interaction of age,

education and grade were found to have significant effect on strategic emphasis

(F=.092, p<.10). Similarly, the value of (F=.072, p<.10) indicated that there was

significant effect of age, grade and length of service on dominant characteristics. There

was a highly significant effect of education, grade, and length of service on strategic

emphasis, organisational leaders and dominant characteristics (F=.022, p<.05), (F=.001,

p<.05), and (F=.099, p<.10) respectively.

There is conclusive evidence that age, education, grade and length of service are

influencing strategic emphasis whereas gender is not. The results also demonstrated that

age, education, grade and length of service are influencing organisational leaders and

gender is having no influence. There is also evidence that age, gender, education, grade

and length of service of employee are influencing dominant characteristics. The above

course of analyses provide support to He .

249


Independent Variable Dependent

Variable

Type III Sum

of Squares

df Mean

Square

F Sig

Age ×Education ×

Grade

Strategic emphasis 3.893 3 1.28 2.168 .092*

Education × Grade ×

Length of service

Strategic emphasis,

Organisational

leaders and

Dominant

characteristics

4.585 2 2.292 3.884 .022**

6.746 2 3.373 7.506 .001***

3.126 2 1.563 2.327 .099*

Education Organisational

leaders

4.01 4 1.003 2.231 .066*

Age × Grade Organisational

leaders, Dominant

characteristics

5.861 7 0.837 1.863 .075*

10.351 7 1.479 2.201 .034**

Age × Gender Dominant

characteristics

5.481 3 1.827 2.719 .045**

Age × Grade × Length

of service

Dominant

Characteristics

5.845 4 1.461 2.175 .072**

Note: Note: ***p < 0.01, ** p < 0.05 and *p < 0.10.



c. R Squared = .299 (Adjusted R Squared = .030).

250

4.8.6 Discussion on Organisational Culture

This study explores the relationship between organisational culture and demographic

characteristics in a developing country. The present study empirically investigates the

underlying factor structure of organisational culture and also examined which constructs

of organisational culture carried most significance in predicting employee perceptions

of organisational culture. The analysis revealed three key factors of organisational

culture i.e. strategic emphasis, organisational leaders and dominant characteristics.

From the literature we find that culture, either national or organisational, is a measure of

practices, basic assumptions and preferred values (Hofstede, 1980a). A number of

studies have examined other aspects of organisational culture such as: organisational

culture and innovation (Büschgens et al., 2013); organisational innovation and

organisational effectiveness (Ashraf & Khan, 2013a); diagnosing organisational culture

(Denison et al., 2014); and, cultural orientation (Mavondo & Farrell, 2003). The

literature tells us, culture is the part of society that is “man-made”, the way people live

and their beliefs and customs will impact on culture within organisations that are also

“man-made”. Therefore understanding the organisational cultural context is very

important because of the variations of HRM practices across countries. Cultural

differences may hinder the implementation of HR practices, tools and techniques in the

same way in each and every organisation (Muduli, 2011).

The study found that three factors of organisational culture i.e. strategic emphasis,

organisational leaders and dominant characteristics as dependent variables were found

to be associated with demographic characteristics i.e. age, gender, education, grade and

length of service. Results of the study concur with previous research that found that

many HR practices such as recruitment of employees, wages, rewards, and appraisal

251

systems appear to be vulnerable due to cultural differences. This indicates that factors of

organisational culture need to be taken into account when designing HR practices to suit

the internal organisational culture (Aycan, 2005; Briscoe et al., 2009; Li & Karakowsky,

2001).

This study contains a number of interesting findings relevant to understanding the factor

structure of organisational culture and its perception among employees in order to

decide what cultural factors should be implemented in public sector universities in a

developing country. First, these results illustrated that age, education grade and length

of service of employee influence strategic emphasis, which suggests that if

organisational culture is matched to employees’ basic norms, assumptions, customs, and

beliefs, it will help achieve better performance and organisational goals. This is

supported in the literature by Hofstede (1980a) who mentions six descriptive

dimensions of organisational practice such as process oriented versus job oriented,

employee oriented versus job oriented, parochial versus professional, open versus

closed system, loose control versus tight control and normative versus pragmatic. Each

of these dimensions is based on the strategic position of the organisation and provides a

conceptual framework for comparison between cultures of different organisations (De

Hilal, 2006). Organisational success and effectiveness is based on a well planned

strategy and the employees’ contribution is a key factor (Acar & Acar, 2014). Therefore

it is necessary for management to adapt HR strategies to suit and reflect desired

employee behaviour within the organisation and its culture. Thus exploring strategic

emphasis as a construct of organisational culture provides insights for the managers in

combining employee performance with organisational objectives. Further Acar and

Acar (2014) suggest that in rapidly changing organisational environments the strategic

252

situations and strategy needs to bear in mind the overall perspectives of organisational

culture to deal with and solve problems associated with socialisation in the organisation.

If strategies reflect the cultural context, an organisation is better placed to solve the

problems encountered by the employees of the organisation during the socialization

process.

Second, findings of the study revealed that age, education grade and length of service of

employee have an influence on organisational leaders. This shows that the culture of

any organisation is developed when they place importance on following procedures,

rules and regulations correctly in order to achieve best performances. Employees have

to learn organisational practices after joining the organisation, as most values are

developed and learned in the family and at school (De Hilal, 2006). In this way the

“main leaders” shape the organisation and their values shape the practices of the

newcomers. It is this collective programming of the mind that distinguishes the

members of one organisation from the members of another. Organisational culture

comprises different sub-cultures and each subculture develops a unique shared

understanding while involving all the cultural domains that form the organisational

culture as a whole (De Hilal, 2006). It is therefore important to understand the influence

of organisational leaders on demographic characteristics in public sector universities

and their perceptions of organisational culture. For example in many developing

countries such as Pakistan high power distance characteristics, harmony and

bureaucratic styles of work prevail in social and work settings (Rhodes et al., 2008).

Thus understanding the factorial structure of organisational culture helps managers

become better acquainted with different cultural dimensions. However, while

organisations are compelled to respond and adapt to environmental pressures that create

253

accepted ways of doing business considered legitimate by their customers and investors,

they must also respond to institutional influences that are industry specific or country

specific (Gerhart, 2009).

This is possible when organisations are perceived as a home and personnel regard the

organisation as a large family, where personal relationships constitute the framework of

the whole system (De Hilal, 2006). In relation to Hofstede, Neuijen, Daval Ohayv, and

Sanders (1990) the dimension of organisational culture and parochial organisational

practices, such as informal rituals and practices including socializing. Internal heroes or

the people that others go to for informal interactions and the symbols that mean

something to the “family” such as informal activities that mark the cultural context of

the workforce for example sports teams etc are important for creating the overall “feel”

of the organisation. In parochial practices the literature finds no difference between

senior management and employees (De Hilal, 2006; Schein, 2010). Hofstede (1998)

finds that the main leaders shape organisational culture, and this includes “internal

heroes”.

Third, the analysis of the results showed that demographic characteristics such as age,

gender, education, grade and length of service as independent variables have the same

influence on dominant characteristics as a dependent variable. Countries have different

organisational environments, and therefore different cultures have variations in their

regulatory framework and this framework provides a boundary for organisations and

largely determines what they are able to do and what they must refrain from doing. This

country specific framework can give rise to greater differences between countries than

exists within countries (Gerhart, 2009). Internally, or “looking inside”, an organisation

254

is different from others in the same culture or country due to its unique combination of

resources and capabilities that create competitive advantage in the market or culture in

which the organisation operates (Barney, 1991; Carmeli & Tishler, 2004). These

inimitable resources and capabilities provide the base for the organisation’s unique

organisational culture and its distinctive values and determine organisational

performance (Collins, 2001; Denison, 1990; Kotter, 2008). While Lawler (2003, p. 35)

argues “the organisational design elements of people, structure, rewards, and processes

lead to … corporate culture”. Chan et al. (2004) say that organisational culture greatly

influences the way HR policies and practices are implemented. As previously pointed

out, the restrictive cultures that inhibit employee initiative and require them to strictly

follow rules are associated with a more bureaucratic organisation. More autocratic

leadership styles are to be found in Asian cultures than Western cultures and this

management style restricts risk taking in its employees. The bureaucratic environment

tends to discourage employees from feeling empowered as decision makers (Prabhu,

2005). This is also a common feature of organisations in developing countries like

Pakistan where cultures may restrict risk taking and innovation. In developing nations

harmony is highly valued in social and work relationships and effort is taken to avoid

open conflicts in comparison with more developed nations, whether they be Asian or

Western nations (Rhodes et al., 2008).

The results of the study presented empirical support for the existence of a positive and

significant relationship between organisational culture and demographic variables and

confirm the hypothesis. The findings of the current study compare with that of Kulik et

al. (2009) who found that organisational culture has an influence on employee

performance, in a way that links their self-image to their work. Thus a supportive

255

organisational environment would lead to employees as useful manpower in developing

organisational performance (André, 2008; Ullah, 2013).

In summary the present study establishes the factor structure of organisational culture

for authorities and employees in the public sector. It adds to the body of literature on

employee perceptions of organisational culture by investigating administrative

employees and revealed three factors with correlated variables within organisational

culture (strategic emphasis, organisational leaders and dominant characteristics). The

findings of Ullah (2013) were significant in emphasizing that the supportive

organisational environment develops a useful workforce which contributes better

performance in an organisation. In such an environment employees develop and learn

values and assumptions that help resolve issues confronting it, and thus the

organisation’s culture grows and evolves. This is why organisational culture can be seen

as a product of its members’ collective process of learning and problem solving in order

to adapt and survive within the organisation (Owusu, 2012; Schultz, 1995).


In order to determine the dimensions of organisational citizenship behaviour (OCB) in

public sector universities in Pakistan, factor analysis (FA), correlation analysis (CA),

regression analysis (RA), and multivariate analysis of variance (MANOVA) were

applied to examine the OCB factorial structure and to ascertain convergent reliability

and variability of the relationship according to the data collected from respondents

within the Pakistani public sector universities.

In the course of analyses, the following hypothesis was posited and tested:

256

Hypothesis (Hf): The factor structure of organisational citizenship behaviour are

interrelated, multi-dimensional and optimal predictors.


In order to determine the underlying dimensions of organisational citizenship behaviour,

this study employed factor analysis and the results depicted a solution with five factors.

Once the matrix was considered factorable, the eigenvalues and percentage of explained

variance of each factor were then examined in order to determine the quantity of factors

to be extracted. Five factors with seven items in factor one labelled conscientiousness,

five items in the second factor labelled civic virtue, five items in the third factor labelled

altruism, five items in the fourth factor labelled sportsmanship and two items in the fifth

factor labelled as courtesy.

According to Tabachnick and Fidell (2007) factors that contributed eigenvalue >1.0

were significant and were taken into consideration (results with the five factors are

shown in Table 4.24). The result of this study exhibited eigenvalues >1.0 for five

components i.e. conscientiousness (6.499), civic virtue (3.405), altruism (1.556),

sportsmanship (1.361), and courtesy (1.150). These five components explained total

variance of 58.208% and solution explained 27.077 cumulative percent of the variance

and 58.208 cumulative percent for components. Hair et al. (2006) suggested that lower

communality identifies that an item does not fit well with other items in the same

component. Communality lower than 0.5 (50%) are considered to be weak items (Hair

et al., 2006). In this study total communalities of each item were greater than 0.5; all

communalities were noted (1.0.) for each item which was higher than the recommended

value. Norusis (1992) recommended the Kaiser-Meyer-Olkin (KMO) test to measure

257

sampling adequacy and Bartlett’s test of Sphericity to achieve appropriate factor

analysis results. Tabachnick and Fidell (2007) suggested that a value of KMO greater

than 0.6 is statistically significant and is suitable for factor analysis to provide a discreet

set of factors, and Bartlett’s test of sphericity indicates that correlations among the

measurement items higher than 0.3 are suitable for factor analysis (Hair et al., 2006).




score for each item was identified >2.40 and <4.26. Cronbach Alpha was noted to 0.83

for factor one (conscientiousness), 0.85 for factor two (civic virtue), 0.66 for factor

three (altruism) 0.78 for factor four (sportsmanship) and 0.73 for factor five (courtesy);

that signifies the reliability of the measures. Cronbach’s α is easier to calculate and is a

well-accepted measure within research (Nunnally, 1978; Tabachnick & Fidell, 2007).

Generally, Cronbach’s α coefficient 0.70, is acceptable, however, it may be accepted at

0.60 (Sekaran, 2000).

After using factor analysis five factors emerged as seen in Table 4.24. Factors loaded


conscientiousness that consisted of seven items. The second factor namely, civic virtue,

ranged from 0.720 to 0.839 and consisted of five items. The third factor namely,

altruism, ranged from 0.495 to 0.729. The fourth factor namely, sportsmanship, ranged

from 0.528 to 0.759. The fifth factor namely, courtesy, ranged from 0.782 to 0.819

(Henseler et al., 2009; & Churchill, 1979). The factor loading was above the minimum

threshold criterion 0.4 (Hair et al., 2006). Each factor has a Cronbach’s alpha range

258

from 0.73 to 0.85 which is above 0.60 and satisfied the requirements of the

psychometric reliability test (Hair et al., 2006). All values exceed the recommended

threshold 0.70 (Sekaran, 2000) indicating good internal consistency among the items

within each dimension, each variable, and the entire scale.


Conscientiousness

Factor one, conscientiousness, showed that the question “I am mindful of how my

behaviour affects other people’s jobs” has a high factor loading (0.715). The inspection

of the factor loadings indicates that each of the variables loading was >0.592 on

conscientiousness. The highest factor loading indicates the highest explanatory power in

the conscientiousness factor.

Civic virtue

Factor two, civic virtue, indicates the question “I tend to make little issues into big

problems” has a high factor loading (0.839). An examination of the factor loadings

showed that each of the variables loaded was >0.720 on civic virtue much higher than

on conscientiousness, and the highest factor loading indicates greater explanatory

power.

Altruism

Factor three, altruism, shows that the question “I am the most careful employee” has a

high factor loading (0.729). An examination of the factor loadings indicates that each of

the variables loading on altruism is lower than on civic virtue.

Sportsmanship

259

Factor four, sportsmanship, indicates the question “I help new people even though it is

not required” has a high factor loading (0.759). An examination of the factor loadings

showed that each of the variables loaded was >0.528 on sportsmanship and the highest

factor loading indicates greater explanatory power.

Courtesy

Factor five, courtesy, shows that the question “I attend functions that are not required,

but help the company image” has a high factor loading (0.819). An examination of the

factor loadings indicates that each of the variables loading on courtesy is higher than on

altruism and sportsmanship and the highest factor loading indicates greater explanatory

power.

260

Table 4.24 Descriptive Statistics, Factor Loadings, and Reliability of Conscientiousness, Civic Virtue, Altruism, Sportsmanship and Courtesy.


Alpha

Conscientiousness I am mindful of how my behaviour affects other people’s

jobs. 3.94 0.884 0.715 0.83

I accept changes in the organisation. 3.96 0.878 0.698

I read and keep up with organisation announcements,

memos, and so on. 3.89 0.917 0.681

Do not abuse the rights of others. 4.13 1.004 0.662

I take steps to try to prevent problems with other workers. 3.98 0.805 0.620

I consider the impact of my actions on co-workers. 4.06 0.887 0.597

I try to avoid creating problems for co-workers. 4.12 1.034 0.592

Civic Virtue I tend to make little issues into big problems. 2.40 1.210 0.839 0.85

I always focus on what’s wrong, rather than the positive

side. 2.72 1.168 0.821

I always find fault with what the organisation is doing. 2.57 1.161 0.796

I am the classic complainer who always needs help. 2.53 1.183 0.724

I consume a lot of time complaining about unimportant

matters. 2.62 1.169 0.720

261

Altruism I am the most careful employee. 3.95 0.893 0.729 0.66

I do not take extra breaks. 4.09 0.876 0.697

My attendance at work is above the norm. 4.15 0.877 0.691

I believe in giving an honest day’s work for an honest day’s

pay. 4.18 0.831 0.535

I obey company rules and regulations even when no one is

watching. 4.15 1.658 0.495

Sportsmanship I help new people even though it is not required. 3.87 0.950 0.759 0.78

I help others who have been absent. 3.60 1.053 0.656

I willingly help others who have work related problems. 4.07 0.789 0.653

I help others who have heavy workloads. 4.00 0.873 0.634

I am always ready to lend a helping hand to those around me. 4.26 0.763 0.528

Courtesy I attend functions that are not required, but help the company

image. 3.40 1.021 0.819 0.73

I attend meetings that are not mandatory, but are considered

important. 3.44 1.017 0.782 Note: Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization (.86) and Bartlett test (Chi-square) 3937.731

262



namely perceptions of conscientiousness, civic virtue, altruism sportsmanship and

courtesy. The results are presented in Table 4.25. According to Sekaran (2000) tests of

hypothetical relationships are usually categorized into two groups i.e. ‘causal’ which

investigate the best or exact relationships with cause and effect and ‘correlational’

which examines the important construct relations associated with certain problems of

domain. This study examined the relationships between the constructs of organisational



of factor analysis under the factors perceptions of conscientiousness, civic virtue,

altruism sportsmanship and courtesy variables, and showed a correlation among the

measurement items higher than 0.3 and was suitable for factor analysis (Hair et al.,

2006).

263

Table 4.25 Inter-correlations of Conscientiousness, Civic virtue, Altruism, Sportsmanship and Courtesy


1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

1

2 .623

3 .208 .218

4 .403 .424 .236

5 .367 .385 .195 .437

6 -.016 -.105 -.022 .059 -.053

7 -.020 -.099 .006 .105 -.061 .545

8 -.085 -.178 -.026 .036 -.112 .541 .619

9 -.098 -.089 .006 .051 -.069 .407 .567 .615

10 -.077 -.161 -.013 .059 -.090 .468 .459 .556 .525

11 .150 .170 .024 .066 .090 .140 .168 .195 .183 .196

12 .118 .165 .030 .195 .117 .119 .140 .172 .092 .153 .580

13 .253 .284 .106 .238 .344 -.074 .000 -.008 .047 -.084 .262 .341

14 .353 .393 .151 .241 .359 -.043 -.024 -.070 -.080 -.135 .213 .307 .572

15 .332 .374 .193 .334 .415 -.091 -.006 -.092 -.016 -.074 .197 .201 .525 .472

16 .274 .294 .122 .211 .370 -.116 -.073 -.094 -.066 -.109 .119 .206 .424 .456 .518

17 .319 .345 .116 .175 .357 -.152 -.074 -.115 -.014 -.265 .180 .145 .380 .410 .399 .459

18 .230 .251 .085 .131 .313 -.129 -.058 -.061 -.001 -.078 .175 .206 .329 .332 .287 .369 .492

19 .280 .257 .085 .209 .300 -.114 -.106 -.049 -.049 -.205 .235 .229 .374 .437 .309 .443 .423 .448

20 .200 .155 .034 .146 .065 .103 .034 .090 .047 .103 .181 .166 .172 .113 .179 .218 .186 .230 .261

21 .293 .249 .165 .340 .365 -.039 .069 -.028 .065 -.001 .217 .133 .296 .322 .350 .260 .297 .209 .305 .346

22 .262 .242 .109 .191 .240 .012 .100 .043 .135 .069 .327 .174 .307 .234 .270 .276 .347 .362 .288 .379 .451

23 .354 .336 .136 .310 .366 -.021 .069 -.019 -.023 -.068 .236 .149 .397 .328 .415 .359 .449 .328 .366 .277 .503 .581

24 .392 .362 .150 .335 .471 -.034 .079 -.049 -.015 -.125 .172 .150 .412 .384 .432 .404 .406 .343 .372 .242 .516 .460 .642 1.000

264


For this study regression analysis was performed between five factors of organisational

citizenship behaviour, namely conscientiousness, civic virtue, altruism, sportsmanship

and courtesy as dependent variables and demographic as independent variables using

SPSS-19. It can be seen from Table 4.26 that the factor conscientiousness was

significantly related to the grade of the respondent (β= .182, p< 0.01), and the factor

altruism had a significant relationship with age of the respondent (β= .217, p< 0.01). In

this regard results indicate that the interaction of the demographic variables and

organisational citizenship behaviour is significantly influenced and lending support to

the hypothesis.

265

Table 4.26 Regression Analysis for Organisational Citizenship Behaviour

Conscientiousness Civic Virtue Altruism Sportsmanship Courtesy

Model

(Constant) 3.992 2.695 4.124 4.253 3.411

(-19.68) (-9.16) (-18.85) (-20.64) (-11.90)

Age 0.016 0.038 .217*** 0.01 -0.055

(-0.20) (-0.47) (-2.72) (-0.12) (-.68)

Gender -0.048 -0.031 -0.015 -0.06 0.021

(-.95) (-.61) (-.29) (-1.19) (-0.40)

Education -0.074 -0.027 -0.073 -0.086 -0.053

(-1.29) (-.47) (-1.27) (-1.48) (-.91)

Grade of Respondent .182*** -0.025 0.071 0.076 0.076

(-3.02) (-.41) (-1.17) (-1.25) (-1.24)

Length of Service 0.018 0.045 -0.117 -0.009 0.029

(-0.23) (-.56) (-1.49) (-.11) (-0.36)

Notes: t-ratios in parenthesis are presented.

R2 (.030); (.006); (.028); (.010); and (.005); ***p < 0.01, ** p < 0.05 and *p < 0.10

266



(conscientiousness, civic virtue, altruism sportsmanship and courtesy) have an effect on

the independent variables (age, gender, education, grade and length of service).




difference was found between age, gender, education, grade and experience as

independent variables and conscientiousness, civic virtue, altruism, sportsmanship and

courtesy as dependent variables. Field (2013) considered 0.5 as significant criterion.

Using Roy’s Largest Root and combining demographic variables (independent)

revealed a number of significant relationships with organisational citizenship behaviour

(dependent); namely age and grade has a significant effect on organisational citizenship

behaviour (F= .036, p< 0.05). Further analysis, using Roy’s Largest Root, found age and

length of service together has a significant effect on organisational citizenship

behaviour (F= .013, p< 0.05), education and grade (F= .021, p< 0.05), education and

length of service (F= .036, p< 0.05), gender and length of service of the employees (F=

.050, p< 0.05). Grade and length of service of the employees together have a significant

effect on organisational citizenship behaviour, Pillai's Trace (F= .089, p< 0.10), Wilks'

Lambda (F= .088, p< 0.10), Hotelling's Trace (F= .087, p< 0.10) and Roy’s Largest

Root (F= .003, p< 0.01). Similarly, age, grade and length of service of the employees

have a significant effect on organisational citizenship behaviour, Pillai's Trace (F= .065,

p< 0.10), Wilks' Lambda (F= .064, p< 0.10), Hotelling's Trace (F= .064, p< 0.10), and

Roy’s Largest Root (F= .004, p< 0.01).

267

Table 4.27 MANOVA for Organisational Citizenship Behaviour

Variable Test Name Value Approx F Hypothesis

df

Significance of F

Age and Grade Roy's Largest Root 0.050 2.178 7 .036**

Age and Length of

service


Education and Grade Roy's Largest Root 0.045 2.709 5 .021**

Education and Length of

service


Gender and Length of

service


Grade and Length of

service

Pillai's Trace 0.094 1.452 20 .089*

Wilks' Lambda 0.908 1.457 20 .088*



Age, Grade and Length

of service

Pillai's Trace 0.098 1.525 20 .065*

Wilks' Lambda 0.904 1.527 20 .064*



Note: ***p < 0.01, ** p < 0.05 and *p < 0.10.

268


be seen from Table 4.28 that there was significant effect of gender on the sportsmanship

(F=.095, p<.10). There was a highly significant effect of grade and length of service

together on courtesy (F=.004, p<.01). The value of (F=.071, p<.10) indicated that there

was significant effect of civic virtue on grade, education and length of service of the

employee. The interaction of education, grade and length of service of the employee had

significant effect on courtesy (F=.079, p<.10).

There is conclusive evidence that grade, education and length of service are influencing

civic virtue whereas, age and gender are not. However, the results demonstrated that

gender is influencing sportsmanship and age, education, grade, and length of service of

employee is having no influence. There is also evidence that education, grade and

length of service of employee are influencing courtesy and age and gender is having no

influence. Thus the above analyses lend support to Hf .

269


Independent Variable Dependent Variable Type III

Sum of

Squares

df Mean

Square

F Sig

Grade × Education ×

Length of service

Civic virtue 2.833 1 2.833 3.284 .071*

Gender Sportsmanship 1.224 1 1.224 2.805 .095*

Grade × Length of

service

Courtesy 12.264 4 3.066 3.901 .004***

Education × Grade ×

Length of service

Courtesy 4.030 2 2.015 2.564 .079*

Note: ***p < 0.01, ** p < 0.05 and *p < 0.10



c. R Squared = .311 (Adjusted R Squared = .047)

d. R Squared = .261 (Adjusted R Squared = -.022)

e. R Squared = .308 (Adjusted R Squared = .043)

270

4.9.6 Discussion on Organisational Citizenship Behaviour

Organisational citizenship behaviour (OCB) has widespread significance. It is actually a

form of reciprocation of the favourable treatment which employees receive at their

workplace. OCB is generally viewed as extra role or prosocial behaviour which

enhances organisational benefits, but it is not formally included in an organisation’s

reward system (Aryee et al., 2002; Podsakoff et al., 2009; Watty-Benjamin &

Udechukwu, 2014). Organisations devote significant resources to attract and retain

competitive employees, who will perform their tasks willingly and contribute in

additional ways that involve putting in extra effort for the effective functioning of the

organisation.

Given the relevance of OCB with regard to achieving organisational effectiveness, the

present study contributes to the literature by exploring the factor structure of OCB and

how OCB influences an employee’s performance within an organisation. Furthermore

this study also contributes to the knowledge base concerning perception of OCB among

employees within the public sector in a developing country.

In exploring the factor structure of OCB, firstly it was important to identify both

managerial and employee perceptions of OCB. Secondly it was important to investigate

the ways that employees perform exhibiting behaviours like conscientiousness, civic

virtue, altruism, sportsmanship and courtesy as aspects of OCB within an organisation.

The analysis of the study revealed these five factors of OCB.

The extant literature suggests that the reciprocation of favourable treatment associated

with OCB can be difficult to specify and even reward (Morrison, 1996) but strategies

271

that benefit employees such as training and rewards can contribute positively to OCB.

This positive and reciprocal benefit is evident in workplace performance and in

employee attitudes and behaviours. This is the partnership or mutual gain system

described by Guest (2002). It was therefore necessary to look at OCB in a developing

country such as Pakistan, in order to identify how the factor structure of OCB helps

management to understand the attitudes and behaviours of employees. It would also

help in identifying OCBs perspectives which are important to consider while

establishing organisational HR practices.

A review of literature identified that OCB contributes in motivating employee attitudes,

perceptions and individual characteristics (Organ & Ryan, 1995) which fosters

employee performances and ultimately provides guidance to the organisations to

improve services (Morrison, 1996). Having a more complete understanding about the

factor structure of OCB and knowing the factors through which organisational

performance is influenced, promotes better organisational performance as a result of

focusing on OCBs.

This is linked with the Shweta and Jha (2012) argument that OCB has been a powerful

and influential concept, which is connected to improved process, innovativeness,

effectiveness and increased capabilities of employees to cope with various

organisational uncertainties. Due to OCB’s importance, Boxall and Macky (2009),

Appelbaum and Kamal (2000) and Paauwe and Boselie (2005) identified an increased

interest in the relationship between HRM and organisational performance. They focused

on issues of organisation and control through optimization of the organisational work,

combination of efficiency and flexibility with innovative work structure and the

272

sophisticated management control mix. Therefore, the results of the present study add to

understanding of the factors that may facilitate senior managers’ perceptions, OCBs and

ultimately employee behaviour in public sector universities in ways that help in the

optimization of organisational output and they provide insight in setting flexible

working environments for both the employer and employee.

The results found a relationship between OCB as a dependent variable and demographic

characteristics of employees as independent variables. The findings showed gender,

education and grade of employees had an influence on civic virtue. This indicates that

employees take an active part in organisational events, which Podsakoff et al. (2000)

explains reflect an employee’s recognition of being part of the organisation. While it is

important for organisations to be efficient and productive they must have loyal and

efficient employees, attributes which are influenced by factors of OCB. This is

supported by earlier research, which suggests that organisations not only need to be

functional and productive but need to have loyal and efficient staff (Kashif et al., 2011).

This means to become prominent and productive organisations should have a culture of

cooperation and successful performance where employees feel more confident working

beyond their formal job responsibilities and happily sacrifice their extra time and energy

and actively participate in the organisational activities (Kashif et al., 2011).

Additionally the findings of the study are consistent with Payne and Webber (2006)

who found that employee satisfaction is positively related to OCB, which leads to

efficiency and productivity maximization. Podsakoff, Whiting, Podsakoff, and Mishra

(2011) also found that OCBs have a positive relationship with performance and reward

allocation. This suggests that understanding OCB and OCB-related activities among

273

employees is essential for managers in order to align employee needs with

organisational needs.

Results of the study demonstrated that demographic characteristics of employees

influence OCB. Findings revealed that gender, education and grade have an impact on

sportsmanship. “Sportsmanship” describes employees’ tendency to ignore personal

inconveniences and a tolerance for complaints and grievances towards managers at the

workplace. It also describes the positive citizenship behaviour of employees towards

each other, which has been shown to contribute to prosperity; even to the survival of the

organisations, (Organ, 1988) especially considering the growing service imperative

facing organisations (Schneider, 1990). Happy employees make happy customers which

is the principle of OCB. This OCB principle applies to all organisations, even public

sector universities in a developing country like Pakistan. It is therefore important to

enhance managers’ perspectives in understanding the factors that facilitate OCBs, and

as stated by Farrell and Oczkowski (2012, p. 365) “OCBs are difficult to imitate and

thus can be a source of competitive advantage”.

The results of the study also demonstrated that independent variables such as gender,

education, grade and length of service of employee have an influence on dependent

variables such as courtesy. This infers that employees exhibit courteous attitudes and

respect for each other at the workplace. Organ (1988) defined a courteous employee as

one who often avoids conflicts and creating problems for colleagues, and these

behaviours are helpful for managers from a crisis management perspective. The findings

of this study reflect those reported by Snape and Redman (2010) who found that

through OCBs employees’ sense of responsibility is enhanced, resulting in better

274

outcomes and encouraging employees to go the ‘extra mile’ to do the tasks. This means

it is essential for management to take account of employee’s behaviour to establish a

cordial and friendly environment while encouraging or motivating courteous behaviour

which boosts teamwork and cooperation. However, Korkmaz and Arpaci (2009) argued

that these behaviours cannot be strengthened directly and are special and extraordinary

endeavours expected by the organisation for its success. This suggests that employee

performance is associated with OCB’s various indicators and organisational

effectiveness. An employee will perform OCBs in a positive working environment. This

behaviour in turn helps organisations to evaluate more favourably an employee’s

performance, overall job performance and promotability (Organ et al., 2006; Podsakoff

et al., 2009).

In summary, the present results should be seen as providing insight into the factor

structure of OCB for authorities and employees in the public sector. It adds to the body

of literature on employee perceptions of OCB by investigating administrative

employees and reveals five factors with correlated variables. This proposes managerial

familiarity with the behaviours exhibited within their organisations; provides a closer

alignment between their expectations and the outcomes produced by employees as a

result of the OCB. Authors such as, Haslam et al. (2009) and Edwards and Peccei

(2010) argue that OCB encourages employees to be more productive, generates a

feeling of trust and contentment and confidence to stay and work on behalf of the

organisation. Therefore supervisor OCBs are important in promoting employee OCBs

(Yaffe & Kark, 2011) and thus, OCBs are viewed as important elements to

organisational performance.

275

Lastly, the analysis techniques employed in this study established that there is a positive

and significant relationship between demographic variables and organisational

citizenship behaviour. The findings provide significant support for the earlier studies of

Vitell and Singhapakdi (2008) and Putman (2002) who identified that the higher the job

satisfaction the better the performance at work. Job satisfaction incorporates a different

type of satisfaction, such as satisfaction with rewards and promotions, satisfaction with

supervisors and colleagues and with the work itself (Putman, 2002; Vitell &

Singhapakdi, 2008) and is of vital importance as it affects the employee behaviour

which conclusively affects performance of the organisation (Rowden, 2002).

Given the objective of this study the results contribute to strengthening the awareness of

managers of the consequences of the factor structure of OCB. The results of the study

provide insights for understanding OCB, in the sense that OCB increases both employer

and employee productivity through improved coordination, strengthens organisational

ability to hold competitive employees, encouraging flexibility with respect to

environmental changes and enhancing performances (Moideenkutty, 2009). Managers

in developing countries should consider OCB as a critical feature of management and as

a predictor of work outcomes. Understanding OCB in public sector universities, and the

factors that either directly or indirectly affect OCB helps to attract and retain employees

(Chen et al., 2013). It also helps in extending employee cooperation towards the

supervisors and organisation (Aryee et al., 2007) and makes employees more confident,

helpful and trustful within the organisation (Aycan, 2001).

276

4.10 The Final Model Showing the Relationship Between The Four Constructs:

Human Resource Management Practices, National Culture, Organisational

Culture and Organisational Citizenship Behaviour

SEM analysis was performed adopting a two-step approach as recommended by

Gerbing and Anderson (1988). First, the measurement model was specified using the

interrelationships between dependent and independent factors. Second, the structural

model was specified to test the hypotheses. There are three main types of fit measures

indices: (1) absolute fit indices, (2) incremental fit indices, and (3) parsimonious fit

indices (Hair et al., 2010). The results for the fit measures are presented in Table 4.29.

In this study a confirmatory factor analysis (CFA) was employed to evaluate the

distinctiveness of the measure. CFA was performed on the measurement model to

investigate the latent structure of the factors, which were: human resource management

practices (HRMP), national culture (NC), organisational culture (OC) and

organisational citizenship behaviour (OCB). Data were processed and analysed via

AMOS version 21. SEM with CFA was performed to evaluate the scale structure of the

HRMP in the Pakistani context. These factors were measured using 36 items in total,

derived from the EFA, in the first model (M1). Human resource management practice

was measured with seventeen items code named as RM5, RM6, RM7, RM8, RM9, PP1,

PP2, PP3, PP5, PP6, PP7, PP8, PA 2, PA3, PA7, PA8, and PA9; national culture

consisted of five items code named as NC1, NC2, NC6, NC7, and NC8; ten items

reflected the third construct which was organisational culture and code named as OC14,

OC15, OC16, OC17, OC18, OC20, OC21, OC22, OC23, and OC 24; and the fourth

construct of the study, organisational citizenship behaviour, was measured by four items

code named as OCB21, OCB22, OCB23, and OCB24.

277

The measurement model was analysed using AMOS v.21 with maximum likelihood

(ML) estimation technique. Table 4.29 provides the results of the CFA. The overall

goodness of fit (GFI) statistics showed that the proposed four-factor model for HRM

practices achieved a good model of fit after removing the items with the lowest

coefficient values. The result revealed that in the first model (M1): chi square statistics

(χ2 = 1456.142, df=588) was significant at p<0.0. In addition, the other fit indices i.e.

goodness of fit index (GFI), adjusted goodness of fit index (AGFI), comparative fit

index (CFI), normed fit index (NFI) and root mean square error of approximation

(RMSEA) were used to assess the goodness-of fit of the model and the statistical

significance of the estimated parameters. These indices showed GFI=0.831,

AGFI=0.809, CFI=0.87, NFI=0.8 and RMSEA=0.059 and indicated a need for further

refinement of the model as these results showed poor fit to the data and were not within

the recommended levels.

In order to find a better fit model, a detailed re-specification process was conducted to

refine the model, and improve discriminant validity to obtain a better fit of the model. In

doing so, the items with lowest significance values, which were five items in total i.e.

RM6, RM8, PA2, PA7 and PA8, were dropped from the first model (M1) and the

measurement model was re-run and the second model was developed (M2). CFA was re-

run for assessing the (M2) and the results of the revised model showed that the goodness

of fit model was improved and indicated a better fit model (See Table 4.29). M2

comprising 31 items in total, for which results revealed chi square statistics (χ2 =

978.413, df=428). In addition, the absolute fit measures i.e. GFI=0.87, RMSEA=0.055,

the incremental fit measures i.e. CFI=0.90, NFI=0.846 and the parsimony fit measure i.e.

AGFI=0.849 indicated a better fit.

278

Table 4.29 Goodness-of-Fit Indices

Goodness-of-fit results M1 M2

Absolute predictive fit

x 1456.142 978.413

(p <0.01) (p < 0.01)

Degree of freedom (df) 588 428

Expected Cross-Validation index (ECVI)

3.84 2.66

Comarative fit

NFI

0.8 0.846

CFI

0.87 0.907

GFI

0.831 0.87

AGFI

0.809 0.849

RMR

0.06 0.052

RMSEA 0.059 0.055

279

The Structural parameter estimates i.e. β, Std. loadings and critical ratio (t values) of

this study is shown in Table 4.30. The results showed that the second model (M2)

achieved a perfect fit (χ2 = 978.413, P= 0), CFI=0.90, NFI=0.846, GFI=0.87,

AGFI=0.849 and RMSEA=0.055. The results of the final structural model (M2) (Table

4.30 and Figure 4.1) revealed interesting findings showing that the reward management

including two items (RM5 and RM7) depict a significant and positive relationship (γ =

0.59, p < 0.01), and (γ = 0.56, p < 0.01) between HRM1 respectively. Results also

revealed a significant and positive relationship (γ = 0.63, p < 0.01), (γ = 070, p < 0.01)

(γ = 0.70, p < 0.01), (γ = 0.57, p < 0.01), (γ = 0.62, p < 0.01), (γ = 0.59, p < 0.01) and (γ

= 0.55, p < 0.01), between promotion practices (PPI, PP2, PP3, PP5, PP6, PP7, and PP8)

and HRM1 respectively. The results also indicated a significant and positive

relationship (γ = 0.48, p < 0.01) between performance appraisal (PA3) and HRM1.

The structural parameter estimations also indicated a significant and positive

relationship (γ = 0.69, p < 0.01), (γ = 0.71, p < 0.01) (γ = 0.71, p < 0.01), (γ = 0.83, p <

0.01), (γ = 0.78, p < 0.01), (γ = 0.75, p < 0.01), (γ = 0.81, p < 0.01), (γ = 0.71, p < 0.01),

(γ = 0.75, p < 0.01) and (γ = 0.78, p < 0.01), between organisational culture (OC14,

OC15, OC16, OC17, OC18, OC20, OC21, OC22, OC23, and OC24) and OC1

respectively. The results of the final structural model (M2) also depict a significant and

positive relationship (γ = 0.58, p < 0.01), (γ = 0.66, p < 0.01), (γ = 0.73, p < 0.01), (γ =

0.80, p < 0.01), and (γ = 0.66, p < 0.01) between national culture (NC1, NC2, NC6,

NC7, and NC8) and NC1 respectively. The results also demonstrated a significant and

positive relationship (γ = 0.63, p < 0.01), (γ = 0.65, p < 0.01), (γ = 0.83, p < 0.01), and

(γ = 0.76, p < 0.01) between organisational citizenship behaviour (OCB21, OCB22,

OCB23 and OCB24) and OCB1 respectively.

280

Table 4.30 Structural Parameter Estimates

Structural path β

M1

t-values β

M2

t-values Std. loadings Std. loadings

HRM1→ PA9 1 0.524 ----- 1 0.484 -----

HRM1→ PA3 1 0.507 8.25*** 1.05 0.489 7.59***

HRM1→ PP8 1.19 0.555 8.69*** 1.29 0.557 8.16***

HRM1→ PP7 1.32 0.587 9.02*** 1.45 0.598 8.51***

HRM1→ PP6 1.25 0.62 9.30*** 1.36 0.624 8.68***

HRM1 →PP5 1.18 0.576 8.93*** 1.27 0.57 8.30***

HRM1→ PP3 1.46 0.686 9.78*** 1.63 0.709 9.16***

HRM1→ PP2 1.44 0.677 9.69*** 1.61 0.702 9.10***

HRM1→ PP1 1.3 0.613 9.19*** 1.45 0.632 8.69***

HRM1→ RM9 1 0.508 8.19*** 1.07 0.502 7.66***

HRM1→ RM7 1.1 0.563 8.69*** 1.19 0.562 8.15***

HRM1→ RM5 1.23 0.588 9.00*** 1.34 0.591 8.43***

OC1 → OC14 0.85 0.692 14.5*** 0.8 0.692 14.99***

OC 1→ OC15 0.92 0.715 14.96*** 0.87 0.717 15.59***

OC 1→ OC16 0.95 0.71 14.79*** 0.9 0.711 15.46***

OC1 → OC17 1.2 0.839 18.03*** 1.13 0.838 18.85***

OC1 → OC18 1.01 0.781 16.51*** 0.95 0.781 17.36***

OC1 → OC20 0.96 0.758 15.99*** 0.9 0.758 16.59***

OC1 → OC21 1.13 0.815 17.44*** 1.06 0.814 18.13***

OC1 → OC22 0.95 0.712 15.14*** 0.89 0.712 15.48***

OC1 → OC23 1 0.754 ----- 0.94 0.754 16.73***

OC1 → OC24 1.06 0.78 16.74*** 1 0.78 -----

NC1 → NC8 0.82 0.669 13.79*** 1.18 0.669 9.66***

NC1 → NC7 1 0.803 ----- 1.43 0.804 10.42***

NC1 → NC6 0.99 0.73 14.82*** 1.42 0.731 10.30***

NC1 → NC2 0.77 0.663 11.84*** 1.1 0.662 10.82***

NC1 → NC1 0.7 0.587 10.42*** 1 0.585 -----

OCB1→ OCB21 1 0.636 ----- 1 0.636 -----

OCB1→ OCB22 1.11 0.653 10.85*** 1.11 0.654 10.86***

OCB1 →OCB23 1.19 0.837 12.18*** 1.19 0.838 12.15***

OCB1→ OCB24 1.04 0.762 12.26*** 1.04 0.76 12.24***

Notes: Significant at: p<0.01***, β denotes standardized coefficients; items with lowest coefficient values-

(M1): five lowest value items removed (PA2, PA7, PA8, RM6, RM8).

281

Figure 4.1 indicated that the three practices of human resource management (reward

management systems, promotion practices and performance appraisal systems) have a

significant correlated relationship (γ = 0.48, p < 0.01) with the national culture of the

country, and therefore, confirmed the hypothesis H1 (i.e. human resource management

practices are influenced by the national culture of the country). The result further

displays the path diagram and the correlation between the two constructs organisational

culture (γ = 0.63, p < 0.01) and organisational citizenship behaviour (γ = 0.19, p < 0.05),

which confirmed hypotheses H2 and H3, that there is a positive relationship between

human resource management practices and organisational culture and between human

resource management practices and organisational citizenship behaviour. The path from

national culture to organisational culture shows a significant correlation (γ = 0.12, p <

0.05), confirmed H4, that there is a positive link between national culture and

organisational culture. The results of the final structural model for the four constructs

showed a positive and significant relationship (γ = 0.24, p < 0.01), between national

culture and organisational citizenship behaviour thus providing a confirmation of H5,

that organisational citizenship behaviour is positively influenced by the national culture.

However, results indicated that organisational culture had no significant and correlated

relationship (γ = 0.04, p < 0.064), with the organisational citizenship behaviour which

therefore rejects the hypothesis H6, organisational citizenship behaviour is positively

influenced by the organisational culture (see Figure 4.1).

282

Figure 4.1

0.66 0.80 0.73 0.66 0.58

NC6 NC8

NC7

5 RM5

NC2 NC1

NC

RMS7

RMS5

0.56

0.59

0.24***

5 RM5

0.48***

5 RM5

PP1

RMS9 0.50

0.63

0.12**

5

RM5

0.65

0.63

OCB HRMP

PP3

PP2

0.70

0.70

0.19**

0.83 0.62 PP6

PP5 0.57

0.76 OCB24

0.04 0.63***

0.59

0.55 PP8

PP7

OC

0.48

0.48 PAS9

PAS3

0.78 0.75 0.71 0.81 0.75 0.78 0.83 0.71 0.71 0.69

Note: All Correlations are significant at (***p<0.01, ** p<0.05)

The Final Structural Model for the Four Constructs (HRMP= human resource

management practice, NC= national culture, OC organisational culture and OCB

organisational citizenship behaviour)

OCB21

OCB22

OCB23

OC14 OC24 OC15 OC16 OC23 OC22 OC21 OC17 OC20 OC18

283

4.11 Hierarchical Regression Analysis of Human Resource Management Practices,

National Culture, Organisational Culture and Organisational Citizenship

Behaviour

To further test the hypotheses hierarchical regression analysis was conducted. Table

4.31 shows the values yielded by step 2, HRMP was significantly, positively related to

OCB (β= .179, p< 0.01), and NC was significantly, positively related to OCB (β= .185,

p< 0.01). In step three the strength of the relationship between HRMP and OCB, and

NC and OCB increased with the value of (β= .213, p< 0.01), and (β= .212, p< 0.01)

respectively. These findings support H1 and H3. In addition, the interaction effects of

HRMP, OC and NC (β= -.137, p< 0.05) were significant for OCB, thus supporting H4

and H6.

284

Table 4.31 Hierarchical Regression Analysis of Human Resource Management

Practices, National Culture, Organisational Culture, and organisational

Citizenship Behaviour

Models

Variables 1 2 3

Step 1

Age 0.028 0.037 0.02

Gender -0.038 -0.054 -0.059

Education -0.077 -0.042 -0.045

Grade 0.057 0.032 0.036

Length of Service 0.021 -0.009 0.013

Step 2

HRMP

.179*** .213***

NC

.185*** .212***

OC

0.052 0.097

Step 3

HRMP× NC

-0.083

HRMP ×OC

0.046

HRMP ×OC× NC

-.137**

R2 0.011 0.123 0.136

Change in R2 0.011 0.112 0.013

F 0.784 17.402 2.074

Notes: **p<0.05, ***p<0.01

285

4.12 Discussion on Final Model of the Study

The aim of this study was to empirically examine the potential relationships between

four-constructs: human resource management practices (HRMP), including reward

management systems, promotion practices and performance appraisal systems, national

culture (NC), organisational culture (OC), and organisational citizenship behaviour

(OCB) in public sector universities in Pakistan. For this reason, the structural model was

used to evaluate the relationship among the study’s constructs. This study also aims to

discuss the possible justifications for the significance and insignificance of the

relationships proposed in the theoretical model (Figure 2.2 discussed in Chapter Two).

More specifically, it examines the findings in relation to the extant literature, and the

Pakistani context contributes to an understanding of how HRMP impacts on OCB

through the influence of national and organisational culture.

A two-step approach was adopted in SEM: (1) the measurement model, using CFA

method, was used in order to test and investigate the reliability and validity of the

constructs of the study, and (2) the structural model was investigated using the path

analysis technique for testing the hypothesized relationships between the constructs as

proposed in the research model. The proposed research model was found to be valuable

in explaining the human resource management practices and their impact on


In the structural model a total of six hypotheses were proposed in order to understand

the in-depth exploratory impact of each construct in relation to the study. Hypothesis

(H7) was also derived from the overall model to investigate the relationship between

human resource management practices and organisational citizenship behaviour. The

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results revealed that six out of seven relations were significant and were supported,

whilst one was unsupported.

In order to investigate human resource management (HRM) practices in the Pakistani

context and to examine how HRM practices are influenced by the national culture (NC),

organisational culture (OC), and organisational citizenship behaviour (OCB) within the

public sector universities, SEM was used to investigate the relationship between HRMP

and NC, OC, and OCB. In the course of analysis the following hypotheses are posited

and tested:

Hypothesis 1 The human resource management practices (RMS, PP, & PAS)

are positively influenced by the national culture.


are positively influenced by the organisational culture.


have positive influence on organisational citizenship behaviour.

Hypothesis 4 National culture has a positive influence on organisational


Hypothesis 5 There is a positive relationship between national culture and


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Hypothesis 6 Organisational culture has a positive influence on organisational



have positive influence on organisational citizenship behaviour

mediated by national culture and organisational culture.

As shown in Figure 4.1, the standardized regression weight is 0.48 and critical ratio or

(t-values) 6.063 for HRMP and NC, suggesting statistical significance at the

p<.001value. The results confirmed and strongly supported H1, and suggest that NC was

an important component in HRM practices. These results indicate that the human

resource management practices (reward management systems, promotion practices and

performance appraisal systems) are strongly influenced by the national culture of the

country, implying that if these HR practices were designed in the context of national

culture they would positively influence the perception of employees towards these HR

practices in the public sector universities. Both developed and developing countries are

affected by the economic slow-down and a number of challenges have emerged in

response to the recent economic crises such as a high ratio of unemployment, price rises,

more dismissal and downsizing of employees. The basic target of every organisation is

to achieve better performance through efficient utilisation of resources (Kataria, Rastogi,

& Garg, 2013). This requires emotional, cognitive, behavioural energies and coherence

in working to achieve organisational objectives (Andrew & Sofian, 2011). According to

Bakker et al. (2011) organisational performance and effectiveness is a function of the

mutual efforts of committed and motivated employees who do things which enhance

organisational effectiveness. More specifically, HRM deals with a number of activities

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such as hiring of staff, remuneration and benefits policies and training of staff members.

According to Wilson (1992) HR must be working in partnership with senior

management to make sure people's needs are met by building trust and the

psychological contract for better performances.

Universities are human capital intensive organisations and individuals are being

considered an integral part of every organisation. Human resources have become the

unique source of sustained competitive advantage for every organisation as they meet

the criteria of being valuable, rare, unmatched and non-substitutable (Wright et al.,

1994). The findings of this study are comparable with that of Tessema and Soeters

(2006), Wright et al. (2003) and Park et al. (2003) in that there is a positive link between

HR practices, the organisation and employees performance. The HRM practices in

public sector universities in Pakistan are heavily influenced by the national culture of

Pakistan. This suggests that “the idea of institutionalization may help in understanding

the determinants of HRM practices” in the context of Pakistan (Bjorkman & Lu, 2001;

Fenton-O'Creevy et al., 2008). Understanding organisational institutionalism is very

important as it helps to clarify the institutional perspective about organisational

behaviour (Najeeb, 2014). Analysing the behaviour of the organisation in relation to its

procedural, historical and contextual aspects (Currie, 2009) of the national context is

necessary.

The findings indicated that HR practices aligned with national culture will result in

better performance, which is generally consistent with previous studies (Bjorkman,

2004; Budhwar & Sparrow, 2002; Laurent, 1986) identifying the influence of national

culture on HRM practices and policies. Further the findings of this study are also

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supported by Har et al. (2010), and Schuler (2000), who indicate effective strategies and

operations are foundations for organisational success, of which HRM is a key

requirement for developing, executing and sustaining such competitiveness. The

significance of cultural differences at the national and regional level has also been

recognized (Hofstede, 1980a). National factors such as economics, governance,

financial, legal and trade unions together form the national business system and are the

main sources of difference that underpin HRM (Hall & Soskice, 2001; Lane, 1995;

Whitley, 1999). Therefore, the results from this study suggest that national culture

played a significant role in the design and operation of HRM practices. This finding is

in line with the earlier research of Gerhart (2009), Gupta and House (2004), Javidan et

al. (2004), and Khilji (2003) emphasising ‘organisations mirror societies from which

they originate’. HRM and culture both come from employees who have been influenced

by events outside the organisation in their social settings. This suggests that HR experts

and managers need to understand the cultural differences prior to implementing HRM

practices and policies with respect to the developing countries’ culture (Papalexandris &

Panayotopoulou, 2004).

Another finding from this study reveals that human resource management practices

(reward management systems, promotion practices and performance appraisal systems)

are significantly and positively influenced by organisational culture. As presented in

Figure 4.1, the standardized regression weight is 0.63 and critical ratio (t-values) 7.809

for HRMP and OC, suggesting statistically significance at the p< .001value. The result

confirmed and strongly supported H2, and suggests that OC is an important component

in HRM practices. These results indicate that human resource management practices

including reward management systems, promotion practices and performance appraisal

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systems are strongly influenced by the organisational culture, implying that if these HR

practices were aligned with the organisational culture it would positively influence the

perception of employees towards these HR practices in the public sector universities.

This means organisational rules, policies, and culture impact on HRM practices in

public sector universities in Pakistan. Thus organisational culture can play a significant

role in strengthening HRM practices and improving performance of the organisation.

This finding is supported by Patel and Cardon (2010) Apospori et al. (2008), Bloom and

Van Reenen (2007) and Williamson et al. (2002) who noted growing support for HRM

as a unique source of competitive advantage, improving organisational performances

and contributing to success through developing and delivering strategic roles, efficient

services and facilitating organisational change. Hence, adopting HRM practices can be

beneficial, operational and motivational to improve an organisation’s competitiveness,

and attract more qualified employees that ultimately increase the productivity level of

the organisation. Consequently their legitimacy is enhanced and therefore the adoption

of HRM practices has positive effects and is of special interest to organisations (Patel &

Cardon, 2010).

This study finds the existence of a significant and positive correlation between HRM

and OCB. As presented in Figure 4.1, the standardized regression weight is 0.19 and

critical ratio (t-values) 2.229 for HRMP and OCB, suggesting statistical significance at

the p< .05 value. The results confirmed and strongly supported H3, and suggest that

OCB was a major determinant of employee performances. These results indicate that

the human resource management practices including reward management systems,

promotion practices and performance appraisal systems have a positive and significant

influence on organisational citizenship behaviour. This implied that employees’

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perceptions of HR practices are highly related to the organisational citizenship

behaviour in public sector universities of Pakistan. HRM plays a crucial and dynamic

role in developing OCBs and organisational performance. Guest and Peccei (2001) and

Patterson et al. (1997) indicate that employee commitment and satisfaction are

associated with higher workplace performance and that HRM has an effect on

employees' attitudes and behaviour and therefore employee performance. Employee

work and life satisfaction is therefore a result of the relationship between HRM

practices and policies and work environment, which if well designed and implemented

can enhance performance (Guest, 2002). However, Zaleska and De Menezes (2007)

noted in their study that understanding the changing needs of their employees and the

environment in order to support, guide and motivate them is quite challenging for the

organisations. Thus, a collaborative effort in career related HRM practices benefits both

employees and organisations (Tan, 2008). HRM practices linked to career developments

increase employee organisational commitment by establishing a psychological contract

between an organisation and its employees (Sturges et al., 2005).

With regard to how OCBs are influenced by the national culture in Pakistani

universities, this study finds that national culture is an important determinant and plays

a major role in organisational citizenship behaviour. As presented in Figure 4.1, the

standardized regression weight is 0.24 and critical ratio (t-values) 3.47 for NC and OCB,

suggesting statistical significance at the p< .001 value. The results confirmed and

strongly supported H4, and suggest that NC was a major determinant of employee OCBs.

These results indicate that the national culture has a positive and significant influence

on organisational citizenship behaviour. This implied that within the national culture,

employees with higher levels of OCBs were likely to perform better in public sector

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universities of Pakistan. Providing employees with HR practices that align with national

culture results in more positive OCBs within the organisation. This finding is consistent

with other researcher’s studies (Leat & El-Kot, 2007; Lippert & Swiercz, 2005;

Rosenzweig & Nohria, 1994) where it was noted that in the knowledge economy,

human resources are the most crucial asset of the organisation. The success of

organisations relies mainly on the performance of their human resources. HRM is the

area of management most subject to national differences. Therefore understanding

national context is very important, particularly the socio cultural context, economic and

legal elements and the political environment. In order to understand and to explain

HRM practices and policies, the main focus has been on aspects of national contexts.

The implementation of HRM practices within any country is both historically and

socially embedded therefore HRM practices are context specific. Further, Sonnenberg et

al. (2011) stated that each HRM practice can be important for elevated performance if

the HRM system is focused on a specific combination of practices. Organisations that

focus and commit to HRM practices are thus paying attention to, and investing in their

human capital (Boselie et al., 2005). The aggregate level of OCBs demonstrated by the

employees will have a positive effect on the quality of service that the organisation

delivers (Morrison, 1996).

Furthermore, this study found that national culture has a positive influence on

organisational culture. As presented in Figure 4.1, the standardized regression weight is

0.12 and critical ratio (t-values) 2.254 for NC and OC, suggesting statistical significance

at the p< .05 value. The results confirmed and strongly supported H5, and suggest that

NC was a major determinant of OC. These results indicate that the national culture has a

positive and significant influence on organisational culture. This implies that national

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culture influences the organisational culture of public sector universities of Pakistan.

This finding is consistent with the findings of Bjorkman (2004) who found that national

cultural influences HRM practices and the cultural dimensions of Hofstede can be used

to illustrate how HRM practices may differ across national borders. The majority of

HRM practices and policies are culturally linked (Sparrow & Wu, 1998). However

Budhwar (2000) further explains that HRM practices are context specific, thus, the

national HRM practices are determined by both ‘culture free’ and ‘culture bound’

factors. Hence, HRM practices in any country are heavily influenced by both the

cultural and institutional arrangements. This indicates considerable attention should be

given to understanding the influence of national culture on work-related attitudes and

organisations (Tayeb, 1998). The findings of the current study are consistent with many

other research studies such as Briscoe et al. (2009), Stone and Stone-Romero (2008),

Tayeb (2005), Aycan (2005), Trompenaars and Hampden-Turner (2004), Li and

Karakowsky (2001), Schneider (1992) Laurent (1986), Hofstede (1980a). HRM

practices including recruitment and selection, compensation, performance appraisal,

training and development, job description and employment security appear to be

vulnerable to cultural differences, which may have significant implications for their

design and suitability. According to Hofstede (2001) organisational culture is

constrained by the national culture, which is a reflection of the values, norms and beliefs

of the local population. Hofstede’s argument is supported by Johns (2006) who argued

that national culture is a ‘contextual imperative’ which constrains the organisational

culture. Therefore, different national cultural values can influence leadership styles,

organisational culture and how HRM practices and policies are implemented within the

public sector universities of Pakistan (Rhodes et al., 2008). This indicates that

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successful HRM practices may not be easily transplanted without taking culture into

consideration.

Finally, the results of testing the correlation between organisational culture (OC) and

organisational citizenship behaviour (OCB) reveal an unexpected finding. As presented

in Figure 4.1, the standardized regression weight is 0.04 and critical ratio (t-values)

0.465 for OC and OCB, suggesting that this path was not statistically significant. The

results for this path showed that hypothesis H6 was not supported, indicating that OC

does not influence OCB. This implies that organisational culture was unlikely to be

related to OCB in public sector universities of Pakistan. This finding is inconsistent

with the previous studies of Wan (2011), Kashif et al. (2011), Shweta and Jha (2012)

and Organ (1988) who found that organisations depend upon OCBs and successful

OCBs improve organisational performance and lead to greater job satisfaction and

succession management. The OCB phenomenon is important for developing a culture of

cooperation and successful performance of organisations. Further, in this regard Payne

and Webber (2006) found that employee satisfaction is positively related to OCB, which

leads to efficiency and productivity maximization. However, the findings of the current

study show that in these universities, there is no perceived relationship between OC and

OCB in the workplace.

In the scenario of Pakistan national culture influences the organisational culture of

public sector universities. This reflects that organisational practices and policies are

culturally bound and constrained by the national culture as argued by the Hofstede

(2011). For example in many developing countries such as Pakistan high power distance

characteristics, harmony and bureaucratic styles of work prevail in social and work

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settings (Rhodes et al., 2008). Thus, the political involvement and cultural elements

such as obedience (yes boss culture) and Islamic work ethics on organisational

outcomes such as, work behaviour, interaction and communication in the workplace is

influenced by NC. Pakistan scored high on ‘Power Distance’ and is highly influenced

by the Islamic perspectives; therefore, OC is based on these strong elements which are

constrained by NC. For example national culture discourages disagreement with senior

management.

Apart from the cross-cultural differences at a national level, diversities within intra-

culture (within the same nation but in different group or organisation) are also identified

(Hofstede 1994). Pakistan is highly influenced by the religion Islam (98% population)

and high on ‘power distance’ where employee are reluctant to express disagreement

with their seniors (Hofstede & Hofstede 2005). Therefore certain elements of the NC

have a stronger influence on the individual than elements of the OC which has resulted

in an organisational culture of public sector universities which is very bureaucratic with

no significant impact on OCB.

Lastly, with regard to how HRMP (reward management systems, promotion practices

and performance appraisal system) influence OCB mediated by national culture and

organisational culture. The results confirmed and strongly supported H7, and suggested

that HRMP plays a crucial role in enhancing OCBs, implying that HRMP perceptions

are highly relevant to OCB in the context of Pakistani universities.

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Table 4.32 Summary of Results of the Hypotheses Tested

Hypotheses Results

Ha The factor structure of reward management are optimal

predictors. Accepted

Hb The factor structure of promotion practices are optimal


Hc The factor structure of performance appraisal are optimal


Hd The factor structure of national culture are optimal predictors. Accepted

He The factor structure of organisational culture are optimal


Hf The factor structure of organisational citizenship behaviour

are optimal predictors. Accepted

H1 The human resource management practices (RMS, PP, &

PAS) are positively influenced by the national culture. Accepted


PAS) are positively influenced by the organisational culture. Accepted


PAS) have positive influence on organisational citizenship

behaviour.

Accepted

H4 National culture has a positive influence on organisational

citizenship behaviour. Accepted

H5 There is a positive relationship between national culture and

organisational culture. Accepted

H6 Organisational culture has a positive influence on


Rejected


PAS) have an influence on organisational citizenship

behavior mediated by national culture and organisational

culture.

Accepted

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The aim in using a mixed method approach was to complement and support the survey

findings and to provide a better understanding of the perceptions of two distinct groups

of employees (1) administrative employees (2) management/ authority of university.

The survey questionnaires were administered among the different levels of

administrative employees and the interviews were conducted with the senior

management of the university. The main reason for conducting interviews was to collect

data from senior management within the university. This was considered more

appropriate methodology. The interviews allowed for the eliciting of more indepth

insights into human resource management practices and their impact on organisational

citizenship behaviour in public sector universities from management’s perspective. Both

sets of data (quantitative and qualitative) were subsequently triangulated with the

relevant past literature.

4.13 Conclusion

This chapter aimed to discuss the key findings of the research study and provided an

examination of the statistical techniques used in analysing the data. First, the chapter

established the reliability, validity, analysis and discussion of each construct separately.

Second, the chapter presented the analysis and the results of hypotheses testing. Finally,

this chapter presented the model proposed in this study that helped to explain the overall

relationships among the predictor variables and the outcome variable i.e. organisational

citizenship behaviour (OCB), the dependent variable.

In addition, a review of the literature in Pakistan shows that developing countries

employees have completely different values from Western employees. Thus, Western

HRM paradigms are less relevant to Asian countries because of their divergent context

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(Nyambegera et al., 2000). Transferring HRM practices and policies from developed

nations to developing nations requires an understanding of culture-sensitive practices

and societal culture characteristics. Therefore, it is advisable for HR experts and

managers to understand the cultural differences prior to implementing HRM practices

and policies with respect to the developing countries’ culture (Papalexandris &

Panayotopoulou, 2004). Noteworthy advances have been made in the past few decades

with regard to HRM which has focused on developed countries (Aycan et al., 2007;

Jackson & Schuler, 1999; Legge, 1995). This needs to be extended to developing

countries and be tested for the generalisability of theories and practices, as most

originated in a developed countries context. There is a need to identify suitable

strategies in relation to the different contexts (Ali, 1992; Aycan et al., 2007; Napier &

Vu, 1998; Robertson et al., 2002).

This study supported a best fit structural model which included interrelationships

between four constructs, namely human resource management practice (reward

management systems, promotion practices and performance appraisal systems), national

culture, organisational culture and organisational citizenship behaviour. In terms of

contribution to human resource management, this study has enhanced the body of

knowledge in relation to HRMP in developing countries. It has provided empirical

evidence of HRMP in public sector universities and has investigated the impact on OCB,

and has contributed to the under researched area of HRM in a developing country,

namely Pakistan. In summary, this study has significantly contributed to management

research by providing empirical findings on human resource management practices and

their impact on organisational citizenship behaviour and informs managers of the need

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to adopt appropriate HRMP for their organisations and context. Suitable HRMP will

improve performance and increase levels of OCBs among employees.

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Chapter Five

Qualitative Analysis, Results and Discussion


This chapter begins with a detailed introduction to the nature of qualitative research and

context of the interviews. This chapter outlines the general perception of human

resource management practices in public sector universities and three specific human

resources management practices: reward management system, promotion practices and

performance appraisal system. The chapter also includes discussion of the two

mediating variables - national culture and organisational culture, and discusses the

outcome variable - organisational citizenship behaviour (OCB). The use of triangulation

to confirm and verify findings is examined, followed by the overall chapter conclusion.

5.2 Nature of Qualitative Research

According to Patton (1990, p. 10) there are three kinds of data collection using

qualitative methods; (1) in-depth, open-ended interviews; (2) direct observation; and (3)

written documents. Data obtained from interviews consists of experiences, opinions,

feelings and knowledge of people (Patton, 1990). Qualitative findings can be presented

alone and in combination with quantitative data. Validity and reliability of qualitative

data rely on the methodological skill, sensitivity and integrity of the researcher because

in qualitative research the researcher is the instrument for data collection (Ehigie &

Ehigie, 2005; Grindsted, 2005; Patton, 1990). The collection of useful and credible

qualitative data requires discipline, knowledge, creativity, training, practice and hard

work (Patton, 1990). To judge accomplishments and effectiveness the researcher must

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engage in evaluative research and employ qualitative methods to evaluate the

information (Patton, 1990).

Patton (1990) compares qualitative and quantitative measures arguing that quantitative

measures are concise, parsimonious, systematic and standardized and easily analysed.

On the other hand, qualitative data is detailed, less concise, variable in content and

difficult to analyse due to its being neither systematic or consisting of standardized

responses; yet it provides an opportunity to understand participants on their own terms

and captures their point of view using open ended responses (Hennink et al., 2011;

Miles & Huberman, 1994). Qualitative research allows the researcher to study selected

issues in depth and with openness, and to gather detailed information. On the other hand

quantitative research requires standardized measures to fit varying perspectives and

experiences of people into a limited number of predetermined response categories

(Patton, 1990). Qualitative data makes quantitative findings clearer and more powerful

(Sackett & Larson, 1990). According to Ehigie and Ehigie (2005) the researcher as an

explorer needs to decide on the use of either qualitative or quantitative methods for

his/her research investigation. Rogelberg and Brooks‐Laber (2002) point out the focus

should be on research findings rather than on methodology.

According to Muchinsky (2003) in the qualitative research method the researchers take

an active role in interacting with the participants. Qualitative research produces results

of research with verbal summaries and no statistical analysis (Zechmeister, Zechmeister,

& Shaughnessy, 2006), whereas, quantitative methods produce findings in numbers,

flow diagrams and narrative descriptions relying on tests, rating scales questionnaires

and physiological measures (Landy & Conte, 2004; Stone-Romero, 2002; Strauss &

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Corbin, 1990). Qualitative research involves discussions about people’s life experiences

and their events (Beins, 2012; Hennink et al., 2011) and can be used for generating

hypotheses and theories (Spector, 2006).

According to Taylor and Bogdan (1998) qualitative research had its beginning in the

interdisciplinary approach in the early 1970s and continues to be embraced by many

people (Camic, Rhodes, & Yardley, 2003). Qualitative research is widely used in the

literature (e.g. Landy & Conte, 2004; McBride & Schostak, 2004; Muchinsky, 2006;

Seale, 1999; Spector, 2006). Lee, Mitchell, and Sablynski (1999) provide evidence that

the use of qualitative research is growing in organisational management research

because the researcher wants additional methods for better understanding of the field.

Qualitative research is used to investigate unconscious and subconscious intents of

employees in organisations. It works like a story completion, the respondent is given

some words or pictures then is asked to complete in his /her own words (Ehigie &

Ehigie, 2005).

The use of qualitative research methods in organisational research includes observation,

ethnography, interviews, focus group discussions, and projective techniques (Ehigie &

Ehigie, 2005). Taylor and Bogdan (1998) considered this as being flexible and dynamic.

5.3 Interviews

Interviews are one of the most popular techniques used for generating information

(Atkinson & Silverman, 1997; Brenner, 1981; Briggs, 1986; DiCicco‐Bloom &

Crabtree, 2006; Madill, 2007). The interview itself constitutes an interaction between

the interviewer and the informants (Grindsted, 2005). Qualitative interviewing is

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designed to find out what is on someone’s mind and interviewing starts with the

assumption that the others perspective is meaningful (Patton, 1990; Ramirez-Rubio et

al., 2013). There are three approaches for qualitative interviewing: informal

conversation, the general interview guide, and the standardized open-ended interview. A

standardized interview minimizes variation in the questions posed to interviewees,

reduces the possibility of bias occurring within different interviews and helps to obtain

systematic and thorough data from each respondent (Patton, 1990).

There is no one best, right, or correct format appropriate to all situations and no single

way of wording will always work effectively. The interviewee and the interviewer’s

personal style all come together to reach or obtain effective information. Interviewing

people can be invigorating as it provides the possibility to reach inside another

individual’s world for a short period of time (Patton, 1990). Joppe (2004) distinguished

two primary focuses of interviews (1) life history or sociological autobiography; (2) in-

depth interviews focused on learning about experiences and activities of the respondent,

which are employed in job analysis to enrich job information in order to produce

detailed and accurate job descriptions (Levine, Ash, & Bennet, 1980).

According to Marshall and Rossman (2010) as an interviewer, the first thing one needs

to consider is whether the interview is to be conducted with an individual or with a

group (also known as focus groups). Individual interviews provide detailed information,

including the meaning of an event and social context of each participant and are

appropriate when the data is subjected to statistical analysis. To ensure the

independence of respondents, it is essential to conduct individual interviews, (Marshall

& Rossman, 2010).

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Kvale (1996, p. 3) offers two metaphors for an interviewer: (1) the interviewer “seeks

nuggets of essential meaning”; (2) the interviewer engages in therapeutic exchange with

the interviewee, while creating a new experience. An interviewer should know what

he/she is asking about and the reason for asking to clarify the meanings relevant to the

research (Kvale, 1996).

5.4 Human Resource Management Practices

As noted in earlier discussion, HRM is an evolving function in many developing

countries and has not yet received full acceptance. In view of this it was necessary to

seek background information on how senior administrative staff within the selected

universities perceived HRM and its role. To build a picture of the context within which

HRM is currently unfolding six questions were asked that sought clarification of the

perceived role of HRM, the current state of HRM usage, and the perceived

understanding of HRM by staff within the institution.

5.4.1 Role of Human Resource Management

Initial questions therefore sought to establish the extent to which the respondent

understood the role of HRM within their organisation, and whether or not their

understanding differed from the currently accepted view, in response to the following

question.

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Q: How would you define the role of human resource management?

All respondents expressed the view that the role of HRM as a separate section had never

been recognised before, but recently it has been realised that HRM has a very important

role in the management of employees including their appointment, training, promotion,

maintenance of personal records and meeting immediate organisational needs. This is

reflected in the following comments:

Interviewee 1

“Conventionally in our system it has never been

recognised that there should be HRM as a different entity

in any organisation, but now, for [the] last couple of

decades its been important and its felt.”

Interviewee 2

“Unfortunately, we [are] in the developing country,

where the HRM as an individual sector, is not yet

recognised; in many sectors though its importance is

recognized.”

5.4.2 Current Human Resource Management Usage

Q: Have you already implemented human resource management practices in this

university?

Q: When did the university introduce human resource management practices?

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Q: How do you perceive the impact of human resource management practices on

employee performance?

This group of questions sought to establish the extent to which HRM practices were

currently implemented, when these HRM practices were introduced and the perceived

impact of HRM practices within the institutes. In response to the questions regarding

implementation of the human resource management practices and the current usage of

HRM practices within public sector universities, most respondents estimated that 70%

to 80% of HRM practices have been implemented in their university. The principal

HRM practice utilised was recruitment of employees through formal testing and

interviews. This view is reflected in the following selected quotes:

Interviewee 1

“...conventionally we have never been able to implement

HRM as in a formal way, but yes the basics of HRM, the

way we recruit, the way we advertise then interviews, then

the trainings. [It] may not be in the complete shape of

HRM, what the international bodies recognise, but yes to

seventy percent extent in Pakistan we do adopt”.

Interviewee 3

“...not 100% but to the extent of 80%, the practices start

with the induction of manpower as a part because that is

the first step”.

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Interviewee 8

“...the recruitment is first, then, there start the transparent

scrutiny of the candidate through interview of high

standard”.

Regarding the introduction of HRM practices within universities, the interviewees

indicated that approximately 10% of practices had been adopted with the establishment

of the organisation. But most of the existing HRM practices have been adopted over the

last 10 to 13 years. Their views are reflected in the following quotes:

Interviewee 1

“Officially I cannot say when, but I think for about [the]

last twelve years. We are trying to follow, not [a] formal,

but [an] informal path of human resource management”.

Interviewee 2

“...I believe right from the beginning advertising [and]

short listing was there but job description maybe

introduced from the year 2000 and onwards from the last

twelve years”.

Interviewee 7

“I can recall that in [the] late 80’s we framed the statutes,

recruitment laws and training system for such purpose”.

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When, the information was sought on perception of the impact of HRM practices on

employee performance, there was agreement that HRM practices had had positive

impacts on employees’ performance.

Interviewee 2

“...Well, they understand, but when it comes to the

implementation they really do not agree because they know

at the end of the day they have to perform. So people who

have good understanding, good knowledge, good

background, they are very much promoting that these

HRM practices should be implemented in letter and spirit”.

5.4.3 Understanding of Staff

Q: How well do the employees understand the human resource management

practices?

The respondents believed that the employees knew the role of HRM in their

organisation but they all agreed that implementation of HRM practices was poor and

employees often pretend ignorance which is reflected in the following comments:

Interviewee 4

“...I will say we disseminate all information. All policies

for their reading and understanding, so far if I put on scale

of 5, I would say three and half”.

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Interviewee 6

“...Well, the employees are being made to understand

through internal memos and notifications that what is the

job of HR, how do they behave in the HR and what are the

expectations from this”.

It was agreed by all respondents that HRM has a very important and vital role in every

organisation. HRM develop manpower, provide training and makes transparent

selection of employees. HRM helps in promotions and further prospective and

proceedings. Most of the interviewees held the opinion that HRM as an individual

sector is not yet recognised in developing countries though its importance is recognised.

Due to the limited resources and some other constraints such as political interference

and low interest of funding authorities, most of the HRM activities are carried out but

looked after by the registrar section. However, respondents understood that effective

implementation of HRM practices increased performance of employees and employee

efficiency is correlated to best HRM practices. Ultimately HRM practices help in

achieving organisational goals.

As a summary of this section, a question was asked, “is there any change which you

want to see in the HRM within your university”? Out of eight respondents five

discussed it generally and did not identify any change, however three respondents’

offered differing views which are reflected below:

Interviewee 1

“...it’s not necessary that international human resource

management laws be taken up for adoption; it is always

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good that there should be a blend of national cultural

values in the techniques of human resource management”.

Interviewee 2

“Well, I wish there is some legislation which makes

implementation of HRM possible because without strong

governmental support and legislation we will not be able

to implement true HRM”.

Interviewee 3

“I would like to recommend to strengthen the department

of HRM at larger level, and people should be sent, those

who are working there at-least, within the country for

higher trainings and refresher courses”.

Based on the information collected through interviews, it can be summarised that the

role of HRM has recently been recognised in public sector universities of Pakistan. Thus,

at this stage the focus has primarily been on the appointment, training, promotions and

maintaining employee personal records. As HRM, is not fully enforced in these

universities most of the job coordination is done by following certain rules and

regulations under instruction from senior staff. Although it was understood and realised

by the university officials that HRM has a positive impact on employee performance the

implementation of HRM practices is noticeably slow. When asked to rank the current

implementation of the HRM practices on a scale of 1 to 5 with 1 being disagree and 5

agree most respondents indicated a level of HRM practices usage of between 3 and 4.

These views are supported with Tessema and Soeters (2006) and Huselid (1995), who

argue that HRM incorporates a range of people management practices including

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recruitment and selection, placement, training, reward management, employee

performance appraisal, promotion, grievance procedure, pension/social security, job

design, information sharing and attitude assessment. All these practices have a

significant impact on employee performance (Tessema & Soeters, 2006) while

providing direction for employees and organisations simultaneously (Fombrun et al.,

1984; Har et al., 2010; Mondy & Noe, 1993). In the past few decades, the field of HRM

has made significant advances, although, the focus of the research has only been on

developed countries (Aycan et al., 2007; Legge, 1995; Schuler & Jackson, 2005). Plenty

of HRM research is available in developed countries but a lack of research regarding

HRM practices is seen in developing countries (Qadeer et al., 2011). Research related to

HRM practices in higher education in Pakistan is at an early stage and therefore slow

integration and development of HRM practices is found (Qadeer et al., 2011).

Analysis of information gathered through interviews with university officials shows that

these universities had adopted similar HR practices such as recruitment through formal

procedures. The remainder of the interviews focused on three specific HR practices:

reward management system, promotion practices, performance appraisal system, two

mediating components-national culture and organisational culture and their impact on

organisational citizenship behaviour. Each component was addressed separately with

the interviewees, and responses from each component will be presented in the following

sections.

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The link between reward management and employee performance is well recognised

(Perkins & Vartiainen, 2010). The ways in which rewards were used within these

institutions was explored by seeking views in relation to two questions. Public sector

universities in Pakistan follow fixed rules and regulations designed by federal

government for reward management, for example salaries, pays and annual increments.

However, some universities have started to reward employees for better performance,

long hours worked and performing well in the various management activities.

Depending on the performance, different rewards are awarded including financial (i.e.

quarter pay or half pay bonus), morale (i.e. a certificate from officials or verbal

appreciation among peers and co-workers) and recommendations for promotion through

good annual confidential reports (ACRs). The focus of these questions probed two

underlying aspects of the reward management system-the communication of expected

standards and acknowledgment of service.

Q: Does management consistently tell employees about the standard used to

evaluate job performance?

Q: Does this university noticeably celebrate excellent services?

A question was asked to check the consistency and procedure for improving

performance. The response was positive and most of the respondents agreed that bosses

do inform their employees about the standards of performance required on the job and

they also help them to improve by conducting seminars, workshops, meetings and

providing training. This is reflected in the following comments:

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Interviewee 2

“…Yes, because I believe that motivation and follow up is

the key to bring changes. So if we are continuously talking

about such things then ultimately we will be able to

implement it”.

Interviewee 6

“…Yes, employees are aware of that there are certain

standards on which they will be assessed”.

But one of the interviewees held a contradictory view stating that:

Interviewee 5

“...It’s actually difficult for the vice chancellor to convey

this. It should be each boss, but that practice is negligible.

They do not do that. It’s like you rub my back, I will rub

your back and that’s very bad”.

A follow up question seeking an indication of how the university demonstrated their

appreciation of service provided was asked. Most of the respondents contended that

excellent services were generally rewarded with financial benefits, consideration for

promotion and the awarding of certificates of recognition.

Interviewee 2

“Yes, in the last five to six years we have started this. Like

teaching faculty who perform very well, they have been

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awarded with best teacher award by higher education

commission and if they publish in very good journals [the]

university reward[s] them with some financial incentives.

So yes, reward management is actually motivate[ing]

people to perform well and the benefit of this reward

management to our university is that our ranking…

improved research output is increased. Well, in the

administration, in-fact I was the one who started by giving

half basic pay, quarter pay or full basic pay depending on

the performance in the various management activities and

that help[ed] us in bringing good positive changes. I

remember that in early time of my registrar people were

not very keen to participate but once we started this half

basic pay, quarter pay or full basic pay people started

taking interest and they perform well”.

Interviewee 6

“Oh yes, there is the best teacher award, best employee

award, so we do give them the annual awards”.

However, two of the respondents were of the opinion that current reward systems lacked

recognition of employee performance as reflected in the following comments:

Interviewee 1

“...Unfortunately we don’t...Not to that extent, but if

someone has done [a] good job maybe a call from the vice

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chancellor or may be a simple pat [on the back], otherwise

we do not celebrate excellent services”.

Interviewee 7

“Excellent services of the employees, yes. Actually in a way

we categorise that someone has excellent service by putting

up the number of years in the service or for the professors

or publishing certain number of papers that is the criterion

to evaluate. So we give excellence to the experienced and

number of publications. But for example in the

establishment division for administration employees, we

have the experience, the number of days, number of years

which he has put [in] and then the ACRs, Annual

Confidential Reports, and truly speaking they do not reflect

the performance, so in a way, we are rewarding but not

rewarding properly”.

The analyses suggest that in these universities the reward management system exists

although in some institutes the reward system only prevails at face value and is not

practiced in letter and spirit. The practice and implementation of rewarding employees

for outstanding services is not regular, and nor is there any consistent communication to

enhance performance in these institutions.

It was suggested by the officials that rewarding employees helps in bringing good

positive changes. Employees perform well and take interest in management activities

more rigorously which ultimately help in achieving organisational objectives. This is

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supported in the literature by Husin et al. (2012) who refer to rewards as all

compensations and incentives provided to employees by the organisation for their

contribution: mental, physical, morale and regulatory. Reward is a central element in the

relationship between the employee and employer, it is important that the employee’s

perceptions of different rewards are understood (Chiang, 2005), and that organisations

offer well defined tangible value (e.g. pay and bonus). The employee must know which

tasks to perform and the rewards they will receive in return; resulting in more effective

employee performance and organisational goal achievement. Porter and Lawler (1968)

concur that demonstrating a strong and visible link between performance and reward,

and if employees believe their performance will be rewarded they strive to achieve a

particular level of performance.


Promotion is widely accepted as a practice which provides reward, and increases

motivation, job satisfaction and organisational commitment (Valverde et al., 2007). The

use of formal promotion practices to improve employee performance was explored

through four questions focused on the themes of opportunity, clarity of requirements,

fairness of procedures and use as a reward.

5.6.1 Promotion Opportunities

Q: Does this university provide clear and consistent requirements for promotion?

Responses identified that two types of promotions were used by the university, (1)

Faculty Promotions (Teachers), and (2) Non Teaching (Administration). For faculty

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promotion the university follows higher education commission (HEC) rules/directions

and for administrative staff universities have a 60-40 recruitment policy (60% through

advertisement and 40% through seniority based internal promotions); although the

percentage breakdown did vary slightly. This was reflected by the following comment:

Interviewee 8

“…we have quota 50% against the promotion and 50% vacancies for

new appointments... The vacancies are advertised through news

papers and other media resources”.

5.6.2 Clarity of Requirements

Q: Is the University fair and equitable in its treatment of management towards

employees with regard to the promotions?

In response to this question all respondents expressed their views that most of the

promotions are fair, and promotion depends on the availability or vacancy of seats in the

university. In the public sector universities, employees cannot be promoted without a

vacant post and budget being available. However one of the respondents indicated

unfair, biased and influenced promotion. His statement is follows:

Interviewee 5

“…Yes, we literally follow the rule and we see the justice has

been made. However, sometimes there is a chance of

favouritism influenced by the lobbies, such as strong unions.

[Where] humanly possible merit is maintained but being

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human we are motivated and do some favours to run the

university”.

5.6.3 Fairness of Promotion

Q: Does the university provide opportunities for career development and support

ongoing professional development?

A follow up question was asked to identify the system in place for improving employees’

skills. Most respondents agreed that the university provided opportunities for career

development and supported ongoing professional development through training,

workshops and seminars. In contrast one of the interviewees identified that

opportunities for career development and professional development are focused on

academia rather than administrative employees. Meaning that at this institution,

negligible opportunities for career development and professional development are

provided to administrative employees. Some of the views are given below:

Interviewee 1

“We have got [a] continuing education department, which not

only relates to the technical but to the nontechnical as well”.

Interviewee 3

“Yes, we normally conduct workshops, seminars for the

improvement of the faculty and for the improvement of our

administrative staff”.

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Interviewee 4

“Again I would say not very impressive for the employees

working in administration”.

5.6.4 Promotion as Reward

Q: Does the university reward excellent performance services through the

promotion system?

A question was asked to determine whether good performance is rewarded with

promotion in the public sector university. All respondents agreed that the university

does not directly promote employees on the basis of performance, but encourages

employees to apply for higher grade jobs. Good performances are recorded in the annual

confidential reports (ACRs) of employees and they are recommended for promotion

when the promotion committees meet.

Interviewee 1

“This is a public sector university so promotion comes up with

availability of seats, but some employee may work hard he/she

will be considered for promotion for the particular post for

which he/she has applied”.

Interviewee 7

“In [this] university rewards… not really…. but, that need[s]

to be targeted”.

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In this section it has been identified that public sector universities follow two main

promotion practices; (1) seniority based promotions, these are made through promotion

committees to promote internal employees. That is employees who are experienced

within the university become eligible, based on their performance, relevant qualification

and attitude and behaviour towards their job which is reflected in the annual

confidential reports (ACRs) and a recommendation for promotion form is completed by

the immediate boss. They are then considered for promotion, and (2) advertisement, the

universities advertise the vacant positions, and both internal employees and external

candidates can apply through prescribed criteria of eligibility. The analyses identify that

organisations use promotions to give incentives to valuable employees in return for their

hard work, and at the same time to fill higher level positions (Deborah et al., 1990).

Promotions reduce turnover and increase employees’ loyalty to the organisation (Go &

Kleiner, 2001). Therefore, officials of the organisation expect that promotions bring an

opportunity for improvement in organisational output. Employees are expected to

produce while learning about the new job. As a result, promotion should improve

organisational efficiencies (Go & Kleiner, 2001). Tessema and Soeters (2006) argue

that there is a positive correlation between promotion practices and perceived employee

performance in that performance was shown to improve when staff felt that this would

most likely lead to promotion.

The analyses showed that some interviewees recognised the importance of justice in

promotion. Park et al. (2003) support this view arguing that practices such as merit

promotion can lead to higher performance in an organisation. However, they also

mentioned chances of favouritism, liking and disliking element and influence of

pressure groups, lobbies and unions. This is supported in the literature, as although

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organisations are spending a large amount attempting to comply with fair employment

laws, many managers face a dilemma in promotion decisions. Organisations continue to

have problems with employees who perceive unfair treatment in promotion practices

(Go & Kleiner, 2001; Lemons & Jones, 2001).


The next component included in the interview agenda was performance appraisal. The

questions were designed to identify the system of evaluation of employee performance

used in public sector universities. The questions were related to the themes of

appraisal’s purpose, appraisals for work-related goals, appraisal based career paths and

performance aspects.

5.7.1 Purpose of Appraisal

Q: What is the main purpose of the appraisal system in this university?

The first question sought to identify the focus of the performance appraisal systems. The

respondents explained that it is used to evaluate an individual’s performance throughout

the year, with the immediate boss assessing the performance of an employee against a

prescribed criterion set by the university. Some of the interviewee views are reflected

below:

Interviewee 1

“In this university the annual confidential reports (ACR) is to

understand the performance of an employee”.

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Interviewee 3

“It is [a] record [of] a person who is working in any position,

how we measure his capabilities, how we measure his working

strength so that is the criteria, that is the measure tool, under

which you can measure a person that how much he earns

during the year.”

Interviewee 4

“The main purpose of the appraisals is to evaluation an

individual to know their yearly progress and performance”.

5.7.2 Appraisals for Work-Related Goals

Q: Does the appraisal system assist employees in setting work-related goals?

The second question was asked to determine if appraisals support the identification of

work-related goals. The responses were divided: 50% agreed that it does. However, 50%

of respondents stated that the appraisal system did not assist employees in setting work-

related goals because of the favouritism and deliberate lack of understanding in

completion of appraisals. Some of the views are as follows:

Interviewee 1

“Basically in this university the annual confidential reports

(ACR) is to understand the performance of an employee in

any section and it’s not more than that…”.

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Interviewee 2

“…To tell you the truth I am not satisfied with the appraisal

system right from the beginning. Yes, we get appraisal each

year and special appraisal in the middle of the year if we

need. But then the appraisal which we receive sometimes is

not very realistic, and sometimes it’s very realistic, but we

are not in [a] position to implement it because of the

pressure groups”.

One of the interviewees seemed adamant while responding to this question and stated:

Interviewee 7

“… it doesn’t, it doesn’t, it doesn’t”.

5.7.3 Appraisals Based Career Paths

Q: Is the performance appraisal conducted to identify employee career paths

within the university?

The link between performance appraisals and careers was explored through asking the

above question. The responses were mixed, some of the respondents strongly agreed

that performance appraisal identifies employee career paths, but some of the

respondents didn’t agree. Their views are reflected as follows:

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Interviewee 4

“…It is very much true in our university. Employee career

path is designed on the basis of appraisal system”.

Interviewee 7

“Those who are filling it in written, they do not put it in the

right justification like everybody gets the excellent. So the

conduct of performance appraisal is perfect, but its

implementation maybe not in true aspect”.

Interviewee 5

“Annual confidential report (ACR) is not a true reflection of

merit and bosses with whom employee works becomes very

chummy, because do not want to spoil the friendly

relationship and favouritism occur from both sides and

results are not justice, so the ACR doesn’t reflect the actual

position”.

Interviewee 2

“Well, I really don’t think that its helping us, but indirectly

section head feel that this employee is performing very well

and he is an asset then he gives special recommendations,

then we try to move that person on right path but routine

appraisal does not help us”.

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5.7.4 Performance Aspects

Q: Do you believe the various aspects of performance on which an employee is

assessed are appropriate?

A follow up question sought to know whether the interviewee thought the pro-forma,

pattern or procedure used for evaluation of performance was suitable to them, or they

see any inappropriateness and suggest any change in the pro-forma. Most of the

respondents held the opinion that small changes in the appraisal pro-forma would make

it more effective. Their views are reflected below:

Interviewee 1

“For this environment, at this stage, for public sector

universities this pro-forma is fine. It needs some tuning, but

at this stage it is fine”.

Interviewee 2

“The criteria are good but you see implementation which is

making things shaky, I mean the appraisal process is okay,

the parameters are okay but when [you] get the desired

appraisal and then you cannot actually implement it

because of one reason or other then the whole process

becomes questionable”.

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Interviewee 8

“Yes, I mean from eighty to ninety percent I am satisfied

with the course set by the organisation with regard to the

performance appraisal system pro-forma”.

The analyses on performance appraisal revealed that public sector universities

understand the purpose of performance appraisal in their universities. Officials enforce

the regularity of this practice and conduct special appraisal if required. This supported

the views of Mehta (2014), who argues that assessing of employee performance is

essential for evaluation and development of staff to ensure they are effective and

efficient in their job roles, as appraised and rewarded employees perform better than

other employees. The importance of the performance appraisal process in creating

motivation and desire to perform better cannot be denied (Chahal & Mehta, 2010).

However, the analyses found a gap in public sector universities regarding the effective

utilisation of performance appraisals. Although this practice is conducted regularly, a

very low implementation was found in terms of its outcomes such as setting work-

related goals, improving job design, allocating job roles and identifying deficiencies.

Only a few criteria of performance appraisals are considered at face value such as the

psychological impression given to employees that their performance is being noticed by

their immediate boss each year. It is used as a tool to control the employee who is not

performing well and given a warning to improve his/ her performance. However the

literature claims that performance appraisal is a system which helps to identify

deficiencies and provides motivation to employees (Jabeen, 2011; Khan et al., 2014;

Mundhra & Jacob 2011). Appraisal is an evaluating tool which helps organisations to

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assess individuals with respect to their job requirements, setting job standards and

providing feedback to the employee (Khan et al., 2014; Mundhra & Jacob 2011), which

is not found in these public sector universities. Apart from the lack of ability for

performance appraisal to aid in setting work related goals as discussed above, some

other observations were also made by the respondents i.e. pressure groups that included

unions, lobbies, political interference and favouritism in rating performance. These

issues were identified as hindrances to the full implementation of performance appraisal

systems: from paper to practice in these public sector universities.


National culture is believed to underpin all aspects of management and HRM. The

extent to which this is considered true was examined by asking questions focused on

three themes, significant historical figures, important historical events and cultural

attributes.

5.8.1 Significant Historical Figures

Q: Do you believe that important people from the country’s past are admired by

people today?

The question elicited strong agreement from all respondents who indicated that

important people from their history are always remembered, and celebrations and

anniversaries are held to pay tribute to them. Some of their views are as follows:

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Interviewee 1

“They are remembered in their quotations”.

Interviewee 2

“We do not forget our former leaders. We respect our

ambassadors and think-tanks”.

Interviewee 4

“Nationally, we remember our past people and we celebrate

national heroes and their services”.

5.8.2 Important Historical Events

Q: In your opinion, what is Pakistan’s strength with regard to the importance of its

historical events?

Likewise, respondent views about the country’s strength showed a high level of

patriotism reflected in the comments below:

Interviewee 1

“Pakistan is more towards collectivism and Pakistani

culture more tends on femininity nature, in femininity

culture, motherhood culture come to take everybody on

board their history, their present and their future. We praise

our history and on the basis of that history we try to

progress”.

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Interviewee 8

“I think the undoubting commitment of the people with the

democracy and rule of law”.

5.8.3 Cultural Attributes

Q: What are the defining cultural attributes of a Pakistani that other people do not

possess?

In an effort to identify the characteristics of the people the respondents were asked

about the cultural characteristics of an individual. The general response was that

Pakistani people are loyal, faithful, courageous, loving and hospitable. The respondent

views are as follows:

Interviewee 1

“Pakistani are good at collectivism, high uncertainty but

they love to work of their own ethnic group, own caste or

maybe own sect”.

Interviewee 2

“We are loyal, we are faithful, and we are obedient,

because that is the eastern culture. We pay lot of respects to

our elders our teachers, we take care of our youngsters’ and

that is our strength”.

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Interviewee 4

“Pakistani are very courageous people, they stands for in

very difficult circumstances, they are innovative, they can

adapt they have very good rooms for other countries; they

survive with dignity even in a difficult times”.

As a summary it is seen that although Pakistan is a young country, 68 years old, the

people admire and remember their regional and national heroes through celebrating

their achievement. On the basis of its history they are trying to progress. They believed

that Pakistani people possess unique traits such as loyalty, faithfulness, courageousness,

loving and hospitable approach. This is supported by McGaughey and De Cieri (1999)

who state that although social and economic similarities are growing between nations,

there still remain significant differences among nations. These are largely derived from

their parochial values and the fact that individuals maintain diverse, culturally based

values. They also mentioned that every country has a different national culture and

Pakistani are good at collectivism, high uncertainty and they love to work with their

own tribe, own caste or maybe own sect. This is supported in the literature by Muduli

(2011) who says national culture has increasingly become a key construct. It refers to

the set of shared norms and beliefs amongst individuals within nationalized boundaries

that are local to a specific area, and as noted by Hofstede (1980a) all national cultures

are different, influencing managerial values and beliefs. Due to varied national cultures,

management practices need to be diverse. Hofstede (1980a), Jackson (2002), Laurent

(1983), and Trompenaars (1993), further assert in their research that each society is

different and that these differences can be noted in the organisational practices and

distinctive management styles exhibited. Organisations are influenced by their particular

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cultural environment, with most HRM practices being based on cultural beliefs that

reflect the basic assumptions and values of the national culture and the expectations and

needs of the organisation, its culture and its employees (Myloni et al., 2004).


The other mediating component included in the interview agenda was organisational

culture. To examine the culture within the university opinions were sought on themes

such as organisation as a special place, attributes of the organisational leader,

management style and organisational spirit.

5.9.1 Organisation as a Special Place

Q: Do you believe that the organisation is a very special place?

The responses were positive and they believed that people see the university as a special

place. They share their time and expertise to support the university. A few reflections

are given below:

Interviewee 1

“People here love to work in groups, whatever the reflection of

national culture it is available in the organizational culture”.

Interviewee 2

“One of most important features of this university is that most

of the people feel that they [are] part of this bigger family”.

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Interviewee 4

“This place works like a cordial environment: a friendly

place”.

5.9.2 Attributes of Organisational Leader

Q: Are the leaders of this organisation considered to be mentors, facilitators and

parent figures?

The responses were positive and they believed that this was true in their university.

Their views are reflected as below:

Interviewee 1

“…We take our bosses and match them as the head of the

family of our own”.

Interviewee 6

“...All three qualities are present in our leaders”.

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5.9.3 Management Style

Q: How would you define the management style in this university?

The respondents stated that although public sector universities are governed by the

federal government, a participatory management and consensus building style prevails

within the university. Some of the views are as follows:

Interviewee 2

“…I think most of the time it is a consensus building style,

where we take into confidence all the stakeholders, all the

end users, all the people who are involved. Team on board

we have like [a] top management committee, then, we have

[an] administrative committee, then, we try to take on board

as many people as possible. In my personal view, I believe

in bottom to top approach, instead of top to bottom

approach”.

Interviewee 3

“…Its management style is appreciated, especially the

discipline. Law and order is the main key of any

organisation.”

Interviewee 4

“Participatory way of management at all levels”.

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5.9.4 Organisational Spirit

Q: What spirit holds the university together?

Finally, respondents were asked to identify the bonding elements and characteristics that

exist in the university, which help the smooth functioning of the university. Some of

the respondents’ views are reflected as below:

Interviewee 1

“The spirit of mutual respect through the university bound

us all working with the enthusiasm”.

Interviewee 2

“Pride and affiliation with this university and being part of

this bigger family. I think the ranking of this university;

these are things making us together”.

Interviewee 3

“…Welfare of its employees, especially students and their

parents, so this keeps us going”.

Interviewee 4

“The sense of ownership and teamwork production”.

Interviewee 8

“I think the observance of code and dutifulness”.

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The analyses shows that employees working within public sector universities are very

committed and they feel part of the bigger family. They prefer to work in teams and

groups. They are found to be more inclined towards collectivism. According to

Hofstede (1998) organisational cultures differ more in their practices and become a

visible part of culture which can be changed within cultural boundaries. The core of

organisational culture is in the practices shared by its employees. It was revealed that

generally, the leaders are considered as mentors, facilitators, and parent figures, and a

cordial and friendly environment prevails. This is supported with Rhodes et al. (2008),

arguing that in developing nations harmony is highly valued in social and work

relationships and more effort is taken to avoid open conflicts than in developed nations.

It is summarized that public sector employees tend to follow rules and regulations in

letter and spirit and are inclined to the observance of code and dutifulness. This is

supported by Chan et al. (2004), who suggest that organisational culture greatly

influences the way HR policies and practices are implemented. For example

bureaucratic cultures discourage employee initiative and employees are asked to follow

desired rules and regulations with little or no room for innovation or risk taking.

Generally in Asian firms, particularly public sector work, with an autocratic leadership

style and high power distance characteristics, rewarding innovation is hard because of

little empowerment and a bureaucratic environment (Prabhu, 2005).


Organisational citizenship behaviour (OCB) has been identified as a necessary factor for

improved organisational performance and success. Respondent views were sought on

OCB within the university and its impact on performance. Interviewees were asked

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questions focused on the themes of OCB within organisations, OCB impact on

performance and relationship between HRM and OCB.

5.10.1 Organisational Citizenship Behaviour within Organisation

Q: How do you see organisational citizenship behaviour within your university?

The respondents agreed that OCB was an attitude or behaviour that included respect,

loyalty and commitment to the organisation which is reflected in their comments below:

Interviewee 1

“Within their own parameters they perform well, they

respect well”.

Interviewee 2

“Well, mostly people working in this university belong to

rural culture where the general attitudes of people are to

pay respect, remember the past, so these attributes are

there”.

Interviewee 3

“I think as such we have positive approach from our

employees and it’s vice versa”.

Interviewee 4

“I think I already said that sense of ownership makes a

bond between employee and organisation. If good HRM is

in place at some stage all employees start feeling that the

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organisation is like their home, they will work here, will be

retired from here, feel like lasting stakeholders and keep on

contributing”.

Interviewee 8

“I think it’s a chain for example the behaviour of top

management to the employees and employees behaviour to

the organisation and towards society is comparatively that

gives edge for further growth”.

5.10.2 Organisational Citizenship Behaviour Impact on Performance

Q: What is the impact of organisational citizenship behaviour on performance?

This question found that the overall response from the respondents was positive and

they considered that OCB has a positive impact on employee performance. One of the

respondents view is as follow:

Interviewee 1

“…that people love to work within their understanding of

people and they give very good results”.

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5.10.3 Relationship between Human Resource Management and Organisational


Q: Do you see any relationship between human resource management practices

and organisational citizenship behaviour?

Opinion and views on this question showed all respondents believed that there is a

positive and strong relationship between HRM practices and OCB. They are very much

interrelated.

Interviewee 2

“…Yes, they are very much interrelated because HR

basically, by default is human skills which are built in

human when they are brought in the organisation through

various HRM practices, then you have to move those

attributes and behaviour in such a way that they can deliver

good performance for the organisation”.

Interviewee 4

“Very strong relationship between HRM and OCB”.

Interviewee 2

“Off course, when if we experience HRM system as a whole,

which we are not experiencing, and offcourse it impacts the

society, civil society, to the region we definitely make”.

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In summary it is seen that employee’s behaviour towards job role is positive and they

are willing to work, and are found to be obedient. In literature, increased interest has

been seen in the relationship between HRM and organisational performance

(Appelbaum & Kamal, 2000; Boxall & Macky, 2009) and attention has focused on the

importance of knowing the mechanisms through which HRM influences organisational

performance (Delery, 1998; Paauwe & Boselie, 2005; Wright, Gardner, Moynihan, &

Allen, 2005), which is reflected in the interest and importance shown in OCB.

The respondents suggested that every organisation should establish an HRM department,

it has many advantages if they want to improve their manpower and at every stage of its

development. Guest and Peccei (2001) and Patterson et al. (1997) indicate that

employee commitment and satisfaction are associated with higher workplace

performance and that HRM has an effect on employees' attitudes and behaviour.

One of the respondents stated that research on HRM practices to examine its impact on

OCB is needed in public sector universities because dealing with behaviour is

something which has to be discovered through research. Although, a few researchers

had examined HRM mostly from the perspective of very high status organisations

where HRM practices are fully operational. Research in public sector universities of

developing nations may provide a true picture regarding the role, policies and practices

of HRM which may help in enhancing output and achieving organisational success. A

range of policies and practices associated with work and life satisfaction for employees

and higher performance for the organisation can therefore be implemented more

effectively (Guest, 2002). Further, the aggregate level of OCB demonstrated by the

employees will have a positive effect on the level of quality of service that the

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organisation delivers (Morrison, 1996). Organ and Ryan (1995) noted that primarily

research on OCB focuses on the motivating impact of employee level variables for

example attitudes, perceptions and personal dispositions. Those provide guidance to the

organisations to encourage OCB to improve services (Morrison, 1996).

5.11 Discussion

There was evidence in these public sector universities of some HR practices, where

employees were managed according to policies, with regard to recruitment and selection

procedure, financial policies and personnel performance records and training. The HR

practices and policies in use were inherited from the higher education commission

(federal government) and have remained unchanged since the establishment of the

university. However, it can be seen that all HRM practices were not actually being used.

Increased exposure to competition among universities at national and international level

highlighted the need for the introduction of an independent HRM system.

The universities placed a priority on ensuring that academic/ faculty members were

provided training courses and workshops. The universities had generous study leave and

financial reimbursement for faculty who elected to attain higher education such as PhDs

whereas, more restricted facilities were available to personnel from administration. The

teachers received the most training, but employees working in administration were

provided with fewer developmental programmes because of the inadequacy of plans.

There are also limited financial rewards for administrative employees. Performance

appraisal systems they had in place were not as effective as they would have been if a

reward was available. There were no significant actions for HRM that provided

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evidence of a change to HRM from paper to practice, due to the lack of resources and

insufficient support from the government.

It was the perspective of the senior officials that achieving university goals for creating

fully functional HRM is a need of the time and requires rigorous government action. It

is not possible for the public sector universities to tailor HR practices in letter and spirit,

because of the wide range of different political pressures that had to be responded to.

The management of universities had explained the HR practices and procedures needed

for the universities, considering the national and organisational culture and its goals, in

order to pursue best HR practices in the provision of effective services. To link HR

practices to university strategy needs HRM fully in place to align employees and the

managing of all regulatory issues with national cultural norms and values.

Many organisations consider performance measurement as a method for making

decisions for promoting employees to higher level jobs. Promotions were subject to a

vacancy and budget availability in the public sector universities. Similarly, promotion

consisted of two stages; utilisation of performance appraisals for promoting employees

based on seniority and providing opportunities for existing employees to apply for a

vacant position. However, there was evidence of some political pressures and

managerial favouritism in the implementation of performance appraisal for employee

promotions. This uncertainty sometimes lead to resistance and substantially hindered

adoption of promotion practices on merit. It could be more effectively controlled by

internal forces before its consequences (budget cuts, political interference and lobbies

involvement). The public sector universities also need to provide people-centred

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practices for promoting employees’, job satisfaction, motivation, performance and

organizational citizenship behaviours.

The country is very young and the people of Pakistan possess an enthusiasm and

patriotic approach in celebrating their historical event and heroes. Both the national

culture and the organisational culture are deeply embedded in the employees of these

universities. They carry out their values, norms and traditions at the workplace in a way

that seniors are respected and obliged for their orders obeyed. A caring culture is

common in these universities because they believe that the organisations, where they are

working are like a home place. Therefore they are very respectful with a sense of

belonging towards the organisation and seniors and caring to the new comers. Generally,

employees are found to be loyal to the affiliated organisations because they think it is

the source of their bread and butter and being comforted by a religious element that God

(Allah) is always watchful of their duties even if the boss is away. The feeling of God

fearing makes them a faithful and a devoted employee. Overall the employees were

found to be helpful to each other because of the inbuilt cultural values and norms. The

employees behaviour is three tiered, first respectful to elders and seniors, second

helping co-workers and colleague and third welcoming to the newcomer. Since these

universities are governed by the federal government the high officials are nominated

and appointed by the government, so employees are not involved in any decision

making process, but simply follow instructions of their supervisors. A summary of the

questions and themes raised during the interviews can be found in Table 5.1.

In conclusion, a need for independent, fully functional and operational HRM was

realised and identified to reduce the gap in public sector universities regarding the

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effective utilisation of HRM practices. Effective HRM practices would only be possible

if political interference is replaced with the monitoring element. The government, as the

funding agency, should only monitor the policies and progress of these institutes rather

than intrude into the system. Reward management systems could be re-designed i.e.

performance based rewards so that the employees should not be taken for granted that in

public sector universities hiring is easier but firing of less productive employee is very

difficult. Similarly, promotions should be given on performance merit rather than on

seniority or on the basis of annual confidential reports (ACR) which are biased by

favouritism. The ACRs should be objective to communicate the deficiencies of

employees and he/she should be provided with training for improvement. The role of

the ACRs should be developmental, setting work related goals and identify career paths

to improve productivity among employees.

To develop the area of HRM, it is necessary to understand HRM in the context of public

sector universities. This should reflected the interest and importance shown to the

organisational citizenship behaviour of employees who are influence by the national

culture of the country and organisational culture of the universities, for better

performance and desired outcomes.

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Table 5.1 Summary of Themes of the Qualitative Study

Constructs Themes Questions Key Findings

Human Resource

Management

Role of Human

Resource Management

Q. How would you define the role of human

resource management?

Human resource management has an important role

in the management of employees.

Current Human

Resource Management

Usage

Q: Have you already implemented human

resource management practices in this

university?

Respondents estimated that 70% - 80% of HRM

practices have been implemented in their university.

Q: When did the university introduce human

resource management practices?

Q: How do you perceive the impact of human

resource management practices on employee

performance?

Understanding of Staff Q: How well do the employees understand the

human resource management practices?

Respondents believed that the employees knew the

role of human resource management practices in

their organisation.

Reward

Management

System Reward Management

Q: Does management consistently tell

employees about the standard used to evaluate

job performance?

Most of the respondents agreed that management do

inform their employees about the standards of

performance required and excellent services were

rewarded with financial benefits, promotions and

awarding of certificates of recognition. Q: Does this university noticeably celebrate

excellent services?

Promotion

Practices Promotion Opportunity Q: Does this university provide clear and

consistent requirements for promotion?

Respondents identified that 60% promotion

opportunities based on advertisement and 40%

through seniority based internal promotions.

Clarity of Requirements

Q: Is the university fair and equitable in its

treatment of management towards employees

with regard to the promotions?

Respondents expressed that promotion depends on

the availability or vacancy of seats in the public

sector universities.

Fairness of Promotion

Q: Does the university provide opportunities

for career development and support ongoing

professional development?

Most respondents agreed that the university provided

opportunities for career development and support

professional development through training,

workshops and seminars.

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Promotion as Reward

Q: Does the university reward excellent

performance services through the promotion

system?

All respondents agreed that good performances are

recorded in the annual confidential reports (ACRs)

of employees and recommendations are given to the

university promotion committees for promotion.

Performance

Appraisal

System

Purpose of Appraisal Q: What is the main purpose of the appraisal

system in this university?

Respondents explained that appraisal is used to

evaluate an employee performance.

Appraisals for Work-

Related Goals

Q: Does the appraisal system assist employees

in setting work-related goals?

Responses were divided, 50% agreed that appraisal

system assist employees in setting work-related

goals and 50% respondents stated that it does not.

Appraisal Based Career

Paths

Q: Is the performance appraisal conducted to

identify employee career paths within the

university?

The responses were mixed, some of the respondents

agreed that performance appraisal identifies

employee career path. However some of the

respondents stated that it does not.

Performance Aspects

Q: Do you believe the various aspects of

performance on which an employee are


Most of the respondent held the opinion that minor

changes in the performance appraisal pro-forma

would make it more effective.

National Culture Significant Historical

Figures

Q: Do you believe that the important people

from the country’s past are admired by people

today?

Responses elicited strong agreement from all

respondents that important people from their history

are admired by people of today.

Important Historical

Events

Q: In your opinion what is Pakistan’s strength

with regard to the importance of its historical

events?

Respondents stated that a high level of patriotism is

Pakistan’s strength.

Cultural Attributes Q: What are the defining cultural attributes of a

Pakistani that other people do not possess?

The general response was that Pakistani people are

loyal, faithful, courageous, loving and hospitable.

Cont:

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Cont:


Organisational

Culture Organisation as a

special place

Q: do you believe that the organisation is a

very special place?

Respondents believed that university is a special

place where they share their time and expertise to

support the university.

Attributes of

Organisational Leaders

Q: Are the leaders of this organisation

considered to be mentors, facilitators and

parent figures?

Responses were positive and they stated that in their

university leaders are mentors, facilitators and parent

figures.

Management Style Q: How would you define the management

style in this university?

Respondent stated that a participatory management

and consensus building style prevails within the

university.

Organisational Spirit Q: What spirit holds the university together?

Respondents expressed that spirit of mutual respect,

sense of ownership, welfare of employees and the

observance of code and dutifulness are the bonding

elements that exist in the university.

Organisational

Citizenship

Behaviour

Organisational


Within Organisation

Q: How do you see organisational citizenship

behaviour within your university?

Respondents agreed that organisational citizenship

behaviour was an attitude or behaviour that included

respect loyalty and commitment to the organisation.

Organisational


Impact on performance

Q: What is the impact of organisational

citizenship behaviour on performance?

Respondents considered that organisational

citizenship behaviour has a positive impact on

employee performance.

Relationship between

Organisational


and Human Resource

Management

Q: Do you see any relationship between human

resource management practices and

organisational citizenship behaviour?

Respondents believed a positive and strong

relationship between human resource management

practices and organisational citizenship behaviour.

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5.12 Triangulation Analysis

Using different qualitative modes and statistical tests to analyse the data helps in

identifying related data patterns and verify their findings (Kimchi, Polivka, & Stevenson,

1991). Triangulation provided a logical balance to identify and delineate the possible

impact of human resource management practices in public sector universities in

Pakistan. Triangulation thus facilitated a more complete understanding of the current

research phenomenon.

5.12.1 Quantitative Stage

In the quantitative stage, a survey of five public sector Pakistani universities with 515

questionnaires was conducted out of which 420 completed questionnaires were used for

the analysis. Details of the sampling are presented in Chapter 3, section (3.4.1.5).

Through the analysis of quantitative data, it was found that human resource

management practices (reward management systems, promotion practices and

performance appraisal systems) are impacting on organisational citizenship behaviour in

Pakistani universities. The findings of the quantitative analysis asserted that national

culture and organisational culture tends to be significantly associated with the functional

and competitive dimensions of human resource management practices. It was found that

human resource management practices are influenced by both the national culture of the

country (Pakistan) as well as by the local organisational culture of the institutes. Thus

the declared objectives of this research were achieved, within the phenomenon of

human resource management practices and their impact on organisational citizenship

behaviour in public sector universities of Pakistan. The current study set out to meet the

research objectives presented in (Chapter 1). This study performed structural equation

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modelling to examine hypothesised relationships between the constructs of the study.

Detail discussion on the quantitative data is presented in (Chapter 4 section 4.10.1).

5.12.2 Qualitative Stage

In the qualitative stage, semi-structured interviews of five public sector Pakistani

universities’ officials were undertaken; with 25-30 questions being asked in each

interview. Details of the participants are presented in (Chapter 3, section 3.4.2.4).

Through the analysis of qualitative data, it was found that a less stringent use of human

resource management practices (HRMP) was observed in Pakistani public sector

universities, as these universities are governed by the federal government and are

following given rules and regulations. The findings of the research through qualitative

analysis revealed the need for independent, fully functional and competitive HRMPs in

public sector universities. In doing so, government support and interest is highlighted as

a fundamental step in establishing HRMPs whilst considering national and

organisational cultures as a developing country (Pakistan). The findings of the research

through qualitative analysis verified that the national culture and organisational culture

are deeply rooted in the individuals of these universities. Therefore careful

consideration of culture(s) is required in designing HRMPs in public sector universities

of Pakistan. Through the analysis of qualitative data it was revealed that understanding

of HRMPs and their impact on organisational citizenship behaviour in the context of

Pakistani universities is important for better outcomes. Thus the analysis of qualitative

data provided confirmatory information about existing HRMP in these institutes and

identified factors to enhance performance to meet the international standards. Hence

declared research questions were achieved, within the phenomenon of human resource

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management practices and their impact on organisational citizenship behaviour in public

sector universities of Pakistan. The current study set out to meet the research questions

presented in (Chapter 1). Detail discussion on the qualitative data is presented in

(Chapter 5 section 5.11).

5.13 Conclusion

In order to determine the perception of human resource management practices (HRMP):

reward management systems, promotion practices and performance appraisal systems in

public sector universities, this study adopted the quantitative and qualitative (mixed)

approach, as it was consistent with the objectives of the study (see Chapter 3).

In addition, a qualitative approach using semi-structured interviews was employed to

collect the data. This method was used because it was designed to deal more directly

with the respondents’ (interviewee: officials of the universities) opinions, thoughts, and

feelings especially when collecting information regarding HRMP and their impact on

organisational citizenship behaviour within the influence of national and organisational

culture. Moreover, this chapter provided a more accurate means of evaluating and

confirming information about the data collected through questionnaires and enabled the

researcher to draw conclusions about generalising the findings of this study using

triangulation.

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Chapter Six

Conclusion, Limitations and Future Directions


To achieve the aims and objectives of the current study a review of literature was

undertaken, followed by the methodology and research design using both a quantitative

and qualitative (mixed) approach. An examination of the model, analysis, findings and a

discussion of the results which emerged is presented. This is followed by the

contributions of the research findings, limitations, delimitations and future directions for

the research. Finally, the last section presents the final conclusions.

6.2 Contribution to Theory and Practice

This section outlines the theoretical and practical contributions of the four constructs

from the current study: Human resource management practices (reward management

systems, promotion practices and performance appraisal systems), national culture

(NC), organisational culture (OC), and organisational citizenship behaviour (OCB).

The findings highlight the importance of different HRM practices and their relationship

to OCB. The relationship between the four constructs under investigation were found to

support the results of earlier studies by Stumpf et al. (2013) Schöttner and Thiele (2010)

Tessema and Soeters (2006) Wright et al. (2003) and Park et al. (2003) which

demonstrate a link between HR practices, the employee and organisational performance.

Although these have largely focused on a single construct.

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To provide insight into how HR practices, as a group of practices, impact on OCB the

constructs of reward management systems, promotion practices and performance

appraisal systems were combined as one multi-dimensional construct, ‘HRMP’, to allow

for model testing using structural equation modelling and hierarchical regression

analysis.

6.2.1 Contribution for Human Resource Management Practices

6.2.1.1 Contributions to Theory: Human Resource Management Practices

This study was grounded in institutional theory, drawing upon the assumption that there

are three types of ‘isomorphism’ that underpin institutional theory i.e. coercive, mimetic

and normative (DiMaggio & Powell, 1983). Institutional theory has been adopted to

examine the influence of HRM practices and provide the theoretical background for the

study as the management of employees takes place within an institutional environment

which impacts upon practices that can be used through the constraints associated with

rules, regulations and accepted procedures. Based on this premise a number of

theoretical contributions emerged.

The primary contribution was the examination of the relationship between HRMP and

OCB in a specific cultural context. This has numerous implications for institutional

theory, (Boselie, 2010) demonstrating that HRMP needs to be adaptive and consistent

with the institutional environments (Boselie, 2010). Institutional theory suggests that

organisations with the same environment become isomorphic and gradually adopt the

same characteristics through three different forms of isomorphism i.e. coercive, mimetic

and normative (Kostova & Roth, 2002). This can be seen in the universities, where

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HRM systems can be influenced by unions and government policies and certain

practices such as rewards and promotions practices that are coercively enforced.

Individual behaviours also need to be consistent with the dominant practices in the

specific national context (Brewster, Wood, & Brooks, 2008).

This research also identified important factors in the relationship between HRMP, NC,

OC and OCB. The inclusive model developed draws attention to the need for HR

practices to recognise the influence of NC and OC, and ensure that HR practices are

designed to suit the socially constructed organisations (Najeeb, 2014). This is important

when designing HR practices as the processes and practices adopted and used by

organisations are not only reflections of the institutional environment but also of the

“established and culturally sanctioned actions, patterns and expectations” of the context

in which they operate (Lee, 2011, p. 65). This reflects and supports the views of

Brewster et al. (2008) that institutional environments are reflections of organisational

processes. Pakistani culture leans towards collectivism and femininity and these cultural

dimensions are reflected in the employee behaviours in the practice of performance

appraisal systems. For example, it was revealed by senior administrators that the

outcomes of the appraisals are rarely communicated to the employees to avoid

conflicting situations.

This study extends research on OC by testing how OC affects the relationship between

HRMP and OCB. The result was surprising, indicating that OC is significantly

associated with HRMP, but is not linked with OCB within the Pakistani context. The

earlier studies by Aycan et al. (2007); Moorman and Blakely (1995); Ueda (2011) found

societies that are low in ‘institutional collectivism’, such as Pakistan, will display less

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OCB than high ‘institutional collectivism’ societies. From the perspective of

institutional theory organisations embed themselves in the environment in which they

operate using coercive, mimetic and normative forces (DiMaggio & Powell, 1983; Scott,

2007; Wang, Tseng, & Yen, 2014).

A related finding of the study established a strong relationship between NC and OC.

Within the Pakistani context, NC has a significant influence on the establishment and

adherence to organisational rules and regulations. This finding is supported by Kattman

(2014) who found that NC influences organisations, in adopting, developing and

embracing universal work practices because beliefs, norms and values play an important

role in determining the characteristics of a specific culture.

Prior work has focused on measuring HRMP individually, but has overlooked the

relationship between HRMP, NC, OC and OCB and demographic variables. Whilst

research into human resource management practices in a number of different cultural

settings has increased in recent years (Al Ariss & Dessler, 2012; Anakwe, 2002;

Kipkebut, 2010; Obeidat, 2012) the link between HRMP and OCB has not yet been

explored. Conducting the research in a specific cross-cultural setting, has not only

revealed the importance of this relationship, but has contributed significantly to

revealing how HR practices are viewed within Pakistani organisations, particularly

universities. Exploring the views of employees has revealed the impact of current

HRMP and the influence of demographic and organisational variables on perceptions of

HRMP, which assisted in developing a theoretical framework for enhancing employee

performance.

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Summing up, this research has added to the emergent organisational behaviour (OB)

literature on HRMP, NC, OC and OCB, particularly in Pakistan, through examining the

viability of the model, in explaining behaviour in a specific cultural context. The current

research illustrates that the institutional environment is legitimised and recognised

through HRM practices.

6.2.1.2 Contributions to Practice: Human Resource Management Practices

The study makes a number of practical contributions through analyses of HRMP and

their relationship to NC, OC, and OCB, which will benefit HR managers, scholars and

university management through the alignment of HRMP, NC, OC, and OCB with

institutionalisation of rules, regulations and disciplines.

Understanding the impact of HRMP and their relationship to NC, OC, and OCB assists

in developing HRM systems that provide better employee performance and enhance

organisational performance. Given the large investment in human capital, understanding

these perceptions is useful as organisations can prioritise the use of their resources more

effectively. In addition, NC and OC were found to exert a significant influence on

HRMP. In order to improve perceptions of HRMP, universities could organise

workshops, seminars and training programs to educate employees about potential

advantages of applying HRMP. This would help to build employee confidence and trust

in the HRMP. In addition, public sector universities could develop HRMP to suit NC

and OC resulting in improved OCBs.

Recently the Pakistani government has taken initiatives to reform higher education and

has implemented a number of programmes relating to staff development ( Higher

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Education Commission Pakistan, 2009). However, some universities in Pakistan

continue to work without proper utilisation and implementation of HRMP due to their

institutional set up. Rules and regulations are still driven by the federal government

although these universities are considered autonomous bodies. The implication is that HR

managers should pay particular attention not only to build more effective HRM systems that

reward, motivate, encourage improved performance, and attract and retain quality staff, but

also align work values and HRMP with national and organisational orientations. This will

help to match employee expectations and perceptions of HRMP within institutional

environments.

The model indicated that the HRMP scale is valuable for examining HRMP and appears to

be congruent with data in the context of Pakistan. The structural model indices indicated an

acceptable level of compatibility and showed robust interrelationships between the variables

of the study. The results also demonstrated that demographic and organisational variables

have an affect on HRMP. Regardless of demographic characteristics, the importance of

cultural dimensions which are heterogeneous across and between nations must be

considered in relation to distinct groups and institutional characteristics. Through this

examination previously overlooked issues have been identified and will assist in

addressing challenges faced in designing effective HRM systems.

Managers and policy makers should carefully consider the requirements and values of

HRMP and ensure that HRM systems effectively meet the norms and values of both

national and organisational culture. They should develop, implement and institutionalise

HRM systems whilst considering the alignment between HRMP and the employee’s needs

which will ultimately increase the employee OCBs and performance in the organisation.

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6.2.2 Contribution for National Culture

6.2.2.1 Contributions to Theory: National Culture

As revealed by the results of previous studies such as Leat and El-Kot (2007), Muduli

(2011) and Hofstede (1980c), who considered the importance of NC and its influence on

HR practices, policies and employee performance, examination of NC in this context

revealed the significance of employee perceptions of HRM practices in Pakistan.

Certain variables such as cultural norms and values were found to be more prominent in

explaining employees’ perception of HRMP. This reflects institutional theory which

suggests that organisations need to conform to the formal rules, regulations and

unwritten norms of specific institutional contexts in order to be more efficient and

legitimate (Kostova & Roth, 2002); and these will be influenced by national culture.

National and organisational cultures were examined to explore the relationship between

HRMP and cultural dimensions in the Pakistani institutional context. Every organisation

operates in its institutional environment where they impart their own beliefs and norms,

which reflect the prevailing values of the community and employees. The preference for

financial benefits illustrates the importance of establishing HRM systems in accordance

with cultural perceptions related to ‘isomorphism’ (observance of rules and regulations).

This study advances understanding of NC by empirical exploration of the role that NC

plays in the design, use and perceptions of HRM practices which is further strengthened

by consideration of demographic variables that have not previously been considered.

This concurs with the literature which emphasises the need to review HRMP (e.g.

Becton et al., 2008; Bolino & Turnley, 2005; Sylvia, 2014).

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Interestingly, the results showed a clear link between NC and OCB, indicating that

OCBs differ across the employees of different nationalities. Changes in the

organisational activities are not accepted by all organisational members with limited or

non acceptance of some HRM practices. An association between NC and OCBs, can be

enhanced through cultural dimensions such as ‘institutional collectivism’ which is

relevant to specific OCBs impact on work outcomes (Javidan & House, 2001), this is

also supportive of the findings of Hofstede (2005) and Testa (2009).

6.2.2.2 Contributions to Practice: National Culture

The practical implications provide insight into how cultural factors influence HRMP

and decisions. Understanding the fact that HRM decisions are grounded in customs,

local culture and administrative frameworks enables managers to discern the impact of

cultural differences on how employees perceive HRMP. Better understanding of NC, in

conjunction with demographic variables provides an understanding of the role of

coercive ‘isomorphism’ (limited by rules). Consequently, the results assist in

understanding employee perceptions of NC and developing HRM practices that

encourage employees to perform in anticipation of higher returns.

Most importantly the results uncover aspects of the little understood relationship

between HRMP and NC in developing countries with a link to normative isomorphism

(adherence to rules). Significantly it has provided additional information for both

managers and HR practitioners to help, manage and encourage employees to exhibit

better OCBs while employing effective HRMP within a certain culture or environment.

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6.2.3 Contribution for Organisational Culture

6.2.3.1 Contributions to Theory: Organisational Culture

Past research suggests that understanding OC within the workplace is helpful in

boosting productivity. The present study contributes to the OC literature by examining

the perceptions of organisational practices in a cross-cultural context, and implies that

OC provides the structure and processes which direct employee behaviour in ways

which support the achievement of organisational goals. The results revealed that OC is

closely linked with HRMP and organisational performance showing implications for

theory and practices.

The relationship between national and organisational culture was also explored and

showed concurrence with Naor et al. (2010), that a better understanding of the

interaction between OC and NC can be helpful in the implementation of management

practices, including HRM and advances research on OC by confirming that perceptions

of OC differ across nations in line with isomorphism (disseminating appropriate

organisational patterns).

Attempts to identify the perceptions of OC in relation to OCB in a cross-cultural setting

are important. This is the first attempt to systematically examine the factor properties of

OC and its influence on employee OCBs in a Pakistani context and extends prior

literature on OC. Surprisingly, the findings indicate no association between OC and

OCB, implying that the willing participation of employees beyond their formal job

responsibilities were not clearly related to any OC characteristic. This agrees by the past

studies of Becton et al. (2008) and Bolino and Turnley (2005) who found that on one

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hand OCBs features can be affected by performance appraisal systems and reward

management systems within the organisation and on the other hand can be motivated

through impression management such as establishing good social image dependent on

the employee motives (Becton et al., 2008).

In examining the role of demographic and organisational variables in influencing the

impact of OC these variables were found to be important, and build on the latest studies

in organisational culture by Büschgens et al. (2013) Ashraf and Khan (2013b) and

Denison et al. (2014) who found that understanding organisational cultural context is

very important for organisational effectiveness because of the variations of HRM

practices across countries.

In addition, the focus on administrative employees within an academic setting has added

an alternative perspective to the research. Traditionally, similar studies have focused on

academics only.

6.2.3.2 Contributions to Practice: Organisational Culture

The results highlight the link between OC, HRMP, NC, and organisational and

demographic variables. This indicates that once the organisation is aware of these

variables it can initiate policies for staff motivation, retention and participation that

encourage performance. Employee commitment can be increased by recognising

cultural values, norms and assumptions, adopting practices which reflect these and

involving employees in decision making. This has two potential benefits: employees

feel recognised and valued through improved participation, sincerity and justification,

and involvement fosters employee acceptance and trust in the system.

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Muduli (2011) argued that implementation of HRMP can be hindered by cultural

differences in every organisation. This is the case in Pakistan. The use of management

and HRM practices developed in Western countries is often problematic and an

appreciation of cultural differences will assist management in adapting practices to suit

societal expectations. The importance of OC, and the key characteristics revealed

through this study will assist management to identify important factors and can be used

in all settings and environments. In this respect, this study builds a theoretical and

empirical framework of OC that provides guidance in acknowledging and integrating its

importance in developing the relationship with improved OCBs.

6.2.4 Contributions for Organisational Citizenship Behaviour

6.2.4.1 Contributions to Theory: Organisational Citizenship Behaviour

OCB has been recognised as beneficial to organisational functioning and viewed as a

desirable behaviour (Becton et al., 2008; Webster & Beehr, 2013). The importance of

OCB and its relationship to other aspects of management is still being explored. In

exploring the relationship between HRMP and OCB this research has added to the

debate in two areas, (1) the influence of NC and OC on HRMP and the resulting OCBs

are examined, and, (2) the use of Pakistan as the country of focus. The subsequent

development of a conceptual and theoretical model of OCB shows the relationship

between HRMP and OCB in a cross-cultural setting, and was used to explore the views

of administrative employees influenced by isomorphism within the public sector.

The results also provide an understanding of the relationship between OCB and HRMP

and shows that an appraised and rewarded employee tends to display more OCBs and

361

employees demonstrate a preference for financial rewards in return for extra role

services. OCBs are based on a mutual gain system and employees weigh up the gain

against the effort (Guest, 2002). Explaining the attitudes and behaviours of employees

towards HR practices which are important for building OCBs helps to identify how

employees view OCB and when they are prepared to contribute effort outside of the

expected job responsibilities. OCBs were displayed or demonstrated within the

boundaries imposed by normative isomorphism (subject to rules and regulations).

Exploring the relationship between OCB and NC in the cultural setting of Pakistan

makes a further contribution to comprehension of the significance of NC. Not

surprisingly, the findings indicated that NC influences OCB, which is supported by

many studies (Denison et al., 2014; Hofstede, 1980a; Muduli, 2011; Myloni et al., 2004;

Rhodes et al., 2008) that found cultural environments significantly influence individual

behaviours and organisational practices within institutions.

In contrast, the results showed no link between OCB and OC within the Pakistani

context. This concurs with past research by Prabhu (2005) and Rhodes et al. (2008) who

found Asian firms autocratic leadership style and high power distance characteristics

restrict employee empowerment and innovation in the workplace. Similarly the

bureaucratic cultures seen in the universities discouraged employee initiative,

innovation and risk taking and employee behaviours are restricted to obeying and

following rules and regulations (Rhodes et al., 2008).

Demographic and organisational characteristics were found to significantly influence

employee perceptions of OCB. The results clearly identified the importance of

362

considering and acknowledging these characteristics in HR practices to enhance

employee OCBs for better performance.

Viewing OCBs from the perspective of employees has uncovered information about the

understanding and consequences of OCB as seen from the employees’ perspective. This

expands the current knowledge on OCB in a developing country influenced by

isomorphism within the public sector. The findings will assist in developing and

establishing frameworks for better performance, and provide guidance for encouraging

OCBs.

6.2.4.2 Contributions to Practice: Organisational Citizenship Behaviour

The findings suggest that organisations rely on OCBs as a form of reciprocity, praise or

approval of employee contributions that can lead to improved rewards or benefits.

Effective HRM systems help to identify employee traits, interests and attitudes towards

their job.

The established positive relationship between OCB and HRMP will assist employers to

identify employee attributes, traits, and interests that aligned with HRMP, in turn

enhancing OCBs. This supports past studies by Guest (2002), Shweta and Jha (2012),

Appelbaum and Kamal (2000), Paauwe and Boselie (2005) who suggest that HRMP are

related to OCB and that poor OCBs lead to poor performance within organisations.

Highlighting the relationship between employees’ perceptions of OCB provides a

guideline for designing and implementing an HRM system that provides a better

alignment of both employee and organisation needs and expectations. To achieve better

363

OCBs, management needs to be aware of how well employees perform key roles on the

job and the extent of extra role/activity engagement. Without this knowledge base

improved OCB will rarely be achieved (Podsakoff et al., 2009; Watty-Benjamin &

Udechukwu, 2014).

The results show a strong influence of HRMP on OCB. This indicates that OCB is a

powerful influence which organisations should utilise for improved organisational

performance and effectiveness, and increasing OCBs among employees must be a key

feature of building effectiveness. The HRM managers should incorporate a range of

features, purposes, functions and activities (i.e. process, purpose, accuracy, variety,

challenge and development) in any job task to enhance OCBs and organisational

performance.

In conclusion, better focused OCB will increase employee OCBs and enhance

performance of the employees and the organisation. Establishing clear links between

HRMP, NC, OC and OCB will help managers improve staff motivation, commitment

and loyalty, leading to improved performance and a sense of value.

6.3 Limitations of the Study

This study has produced interesting findings in relation to the four constructs HRMP,

NC, OC, and OCB, but like all research there are some limitations which must be

acknowledged.

364

6.3.1 Common Method Bias

To overcome the chances of the common method variance this study employed factor

analysis that authenticated that factors were loaded separately. The self-reported

questionnaire raises the possibility of common method variance that should not be

regarded as precise measures of actual usage (Igbaria, 1993). According to Organ et al.

(2006) common method variance can be a problem. Whereas Crampton and Wagner

(1994) suggest common method variance is not as big an issue as is suggested.

6.3. 2 Population and Sample

A limitation of the study was the focus on a single developing country, Pakistan.

Hofstede (1980d) attests that countries like Pakistan are culturally moderate on

masculinity and high on power distance, lower on individualism and higher on

uncertainty avoidance than western developed countries. So, the findings cannot be

generalized to other countries.

Secondly, the data were based on responses gathered from a limited number of

universities; five universities from one specific province of the country, therefore, its

generalisability and representativeness can be questioned. Additional research is

essential to target a larger sample for establishing more conclusively the robustness of

the findings explored in the current study.

6.3.3 Context Generalisation

The study focused on public sector universities and findings may not be applicable to

the private sector university context due to the difference in organisational structure and

governance. For instance public sector universities follow government imposed higher

365

education commission (Higher Education Commission Pakistan, 2009) rules and

regulations whereas, private universities design and implement their own working terms

and conditions. Therefore, it is assumed that, other than the current context of the study,

the findings would be dissimilar. So the findings of the current research are limited in

their generalisabilty.

6.3.4 Measures - Quantitative survey and Semi-structured Interviews

The questionnaires were only completed by administrative employees working in the

university. Other categories of employees such as academic and research staff were not

included in this study. Therefore, the interpretations of results cannot be generalised. To

overcome this limitation, inclusion of other categories of employees would enhance

understanding of different employee perceptions.

Secondly, semi-structured interviews were conducted with a limited number of officials

of each university. As a result, generalisability of the findings may not be possible as

each interviewee has an individual and unique perspective.

Finally, no data indicating evaluations of job performance and personal characteristics

such as commitment and initiatives associated with career advancement or OCBs was

collected in the present study. Despite mechanisms for HRMP, the final decision

remains in the hands of hiring officials in the organisation. Therefore generalizing the

results of this study and comparing across different national settings is cautioned.

366

6. 4 Delimitations of the Study

This study was delimited to public sector universities. The constraints associated with

time, resources, scope and distance restricted the current study to one province of

Pakistan (i.e. Sindh), and a selected number of public sector universities (5 only).

Additional research conducted in other areas of the country would establish whether the

findings are representative of public sector staff employment conditions across higher

education institutes.

The current study provides insight into administrative employee perceptions of HRMP

within selected public sector universities. However, to ensure the research remained

manageable the focus was restricted to three HR practices (reward management

systems, promotion practices, and performance appraisal systems), which prevents a

complete understanding of staff perceptions of HR practices. Other HRM areas may be

equally important and have a significant relationship with national culture,

organisational culture and organisational citizenship behaviour but have been purposely

excluded from this study.

Administrative employees are regarded by university management as central to the

efficient and effective running of the individual institutions. Therefore, research was

restricted to administrative employee perceptions of HRMP and how this contributed to

OCBs, and improved performance within the organisation.

367

6.5 Direction for Future Research

This study sets a new direction for research about HRMP, NC, OC and OCB, providing

an understanding of the relationship between HRMP, NC, OC and OCB. Several areas

for future research remain to be explored.

Other HR practices such as recruitment and selection and training and development in

organisations should be examined to provide a more comprehensive exploration of

HRM systems in a cross-cultural setting.

Future research in other geographic regions such as South East Asia and the Middle

East would advance the understanding of HRMP, NC, OC and OCB and allow for

interesting comparisons. The limitations of cultural differences in terms of norms,

values and assumptions among employees in developing economies could be explored

to examine the impact of these cultural determinants, either national or organisational

on employee performance. Replicating this research in different cultural contexts across

nations, as well as within the country’s own regions and provinces, could reveal more

practices and perceptions of HRMP and their impact on OCBs.

Likewise the research can be expanded to investigate the relationship between reward

management system, promotion practice and performance appraisal system and national

culture, organisational culture and organisational citizenship behaviour in other regions

and provinces of Pakistan

Expanding research to include multiple organisations, of a similar or dissimilar nature,

within the region, other regions or other countries, would allow for better understanding

368

of the impact of HRMP, NC, and OC on OCBs; which would contribute to a more

detailed model.

HRMP, NC, OC and OCB need to be addressed through additional research using

multi-source data, longitudinal study and multi-wave data to test the causal relationship

between the variables. The evaluation and measurement of HRMP, NC, OC and OCB

may vary widely depending on a range of individual and organisational variables such

as type of industry, size of organisation, working domains, job commitments and

behavioural beliefs. Investigations should include additional variables to examine their

impact on HRMP, NC, OC and OCB application.

This study focused on the data collected from administrative employees. Future

investigations should incorporate other categories of employees (i.e. academic, research

staff and private sector employees) for wider empirical findings and their application

and to provide further insight into mutual understanding and obligations of HRMP, NC,

OC and OCB. Further examinations should also be expanded for a comparison of

perception of HRMP, NC, OC and OCB from employees working in other roles and in

the private sector.

The study has demonstrated a need for further examination of the relationship between

demographic variables and HRMP, and the relationship between NC, OC and OCB at

the wider level focused on multiple domestic and international organisations. Apart

from the variables considered, personality characteristics such as need for achievement

(Heintz & Steele-Johnson, 2004), self-esteem (Schütz & Tice, 1997), and need for

power (Kacmar et al., 2004) should be included in future research to determine the

369

motivational level of the employee pursuing a progressive career and development in

the public sector organisations. Including such variables in future research is likely to

produce more generalized findings.

The framework developed for this study should be extended through the inclusion of

other variables such as psychological contract, employees’ wellness and welfare and

employee commitment to investigate the influence of HRM practices on OCBs.

6.6 Conclusion

The current study contributes to the understanding of HRMP, NC, OC and OCB in

public sector universities in Pakistan. Findings of the study significantly add to the body

of knowledge regarding HRMP, NC, OC and OCB, drawing on data from 420

administrative employees. This is a unique perspective as the final model focused on

four constructs: HRMP (reward management systems, promotion practices and

performance appraisal systems), NC, OC and OCB and offers a new perspective

underpinned by institutional theory, and suggests that HRMP is positively influenced by

NC, OC and OCB. This has received little attention in Pakistan, particularly in the

education sector (Aycan et al., 2007; Qadeer et al., 2011). The current study aimed to

fill the gap in the OB literature related to HRMP in Pakistani universities.

The research focus was restricted to three key HR practices (reward management

systems, promotion practices, and performance appraisal systems) to ensure

manageability. These were selected as they are recognised as the most commonly used

HRM practices (Özutku, 2012; Yap, Bove, & Beverland, 2009), and bring about

positive outcomes when well implemented.

370

This study suggests a positive link between the reward management systems, national

culture, organisational culture, organisational citizenship behaviour and demographic

variables, highlighting that these should be taken into account when building effective

and efficient human resources. Although limited to administrative employees this

provides a valuable framework for examining employee perceptions in other parts of the

organisation. In summary, improved understanding of reward management systems

would provide a more comprehensive picture of employee perceptions.

The second key HR practice focused on promotion practices. The findings of this study

have suggested a positive link between promotion practices, national culture,

organisational culture, organisational citizenship behaviour and demographic variables;

with the grade of the employee impacting promotion. The study endorses the need for a

more rational approach towards promotion practices which is fair and enables

employees to develop and contribute to organisational success.

The third key HR practice was performance appraisal systems. The findings suggest a

link between performance appraisal systems and national culture, organisational culture,

organisational citizenship behaviour and demographic variables, indicating their

importance for developing an effective performance appraisal system. To achieve the

desired outcome performance appraisals must be fair and transparent and provide clear

instructions and feedback to employees with regard to performance and future

development.

The impact of both NC and OC on HRMP was found; with both influencing HR

practices and employee perceptions of these practices. This finding confirmed the need

371

for universities to implement HRMP that are aligned with cultural differences and

values. Cultural differences do exist and are embedded in all societies. If these

differences are not recognised and accommodated within HR practices the HR practices

will be poorly supported. Likewise, OC has a significant impact on employee

perceptions of HR practices, which is reflected in established rules and practices.

The results of the study have confirmed that organisational citizenship behaviours are

significantly impacted by HRMP, NC, and demographic and organisational variables,

demonstrating that these necessarily be recognised when motivating employees for

better outcomes. The findings call for universities to develop HRM practices that

consider employee attitudes, behaviours and interests and encourage employees to go

the ‘extra mile’ to do job tasks willingly. Better understanding of OCBs improves the

perceptions of HRMP in the normative forces within organisations.

Taken together, these findings suggest that HRM practices and NC have a significant

impact on OCBs recognised and demonstrated by employees, and the influence of these

factors should be recognised when developing HRM practices. This study has only

examined selected HRM practice, but it is hoped that this research will help to further

understanding of the evolving impact of NC on interactions and behaviours in the

workplace, and stimulate debate.

372

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442

APPENDIX (A)

Interview

Information Sheet for participants

Dear sir/Madam

I am writing this letter to invite you to participate in a research study which I am

conducting as a requirement for my PhD program at the Charles Sturt University,

Australia. The following will provide you with information about this research and what

your involvement would be. The topic of the research is:

Human resource management (HRM) practices and their impact on organizational

citizenship behaviour in the public sector universities of Pakistan

The primary aim of this study is to investigate HRM practices and their impact on

organizational citizenship behaviour in the public sector universities of Pakistan. The

findings of the research will be of benefit to organisations and employees in the field of

HRM. Therefore, it will be appreciated if you consent to include your university as one

of several universities to be included in my research. I believe you are actively involved

in the management and operations of the university so you are best suited to provide

insight into HRM practices and their impact on organizational citizenship behaviour.

Participation in this study is voluntary. If you agree to participate you will be asked for

an interview. The interview will be of 20-30 minutes and if you are unhappy with any

aspects of this research you may decline to answer any of the questions. Further, you

may withdraw at any time without any negative consequences.

All the information provided by you will be kept confidential and your name will not

appear in any report resulting from this research at any stage. Only researchers

associated with this research project will have the access. Information gathered during

this research will be used in my PhD thesis, and any publications which result from it.

There is no risk anticipated to you as participant in this research project.

If you have any questions about this research or if you need additional information

before participation please contact me at +321 3003770 or by email at

[email protected]

mailto:[email protected]

443

School of Management and Marketing Ethics in Human Research Committee has

approved this project. If you have any complaints or reservations about the ethical

conduct of this project, you may contact the Committee through the Executive Officer

Dr. Pamela Mathews

School of Management and Marketing Ethics Committee


Locked Bag 588

Wagga Wagga NSW 2678

Australia

Phone: (02) 69332575

Email: [email protected]

Any issues you raise will be investigated completely and will be dealt with

confidentiality and you will be informed of the outcomes. I hope that this research will

be of benefit to both those who are directly involved in this research and to the broader

community as well.

Thank you in advance for your assistance in this project.

Yours Sincerely

Nusrat Khan Shahani


444

APPENDIX (B)

Interview

Participants’ Consent Form

Researcher:

Nusrat Khan Shahani, PhD Student

Supervisors:

Dr. Pamela Mathews

Dr. Goeff Bamberry



Thank you for your consent to engage in an interview for the research project. I am a

researcher from Charles Sturt University working on this topic.

Human resource management (HRM) practices and their impact on organizational

citizenship behaviour in the public sector universities of Pakistan.

Please sign below indicating that you have:

Read and understood the information sheet given to you.

Been given the opportunity to ask questions about the research and received

satisfactory answers.

Understood you are free to withdraw your participation in this research at any

time without any disadvantage.

Understood that any information or personal details gathered in the course of

this research about you are confidential and that neither your name nor any other

identifying information will be used or published without your permission

Understood that interview will be taped/recorded.

Understood that the information gathered in this study will be included in the

writing up of my thesis and any publications which result from it.

School of Management and Marketing Ethics in Human Research Committee has

approved this project. If you have any complaints or reservations about the ethical

conduct of this project, you may contact the Committee through the Executive Officer

Dr. Pamela Mathews



445

Locked Bag 588


Australia

Phone: (02) 69332575


Signed by:.......................................... Dated:.............................................


446

APPENDIX (C)

Questionnaire

Participants’ Consent Form

I have read the information presented in the information letter about a study being

conducted by the School of Management and Marketing at the Charles Sturt University,

Australia. I understand that I am free to request further information at any stage.

I know that my participation in the research is entirely voluntary. I am free to withdraw

my participation at any time without any disadvantage.

The purpose of the research has been explained to me and I have read and fully

understood the information sheet given to me. Any questions regarding the research

have been answered to my satisfaction.

I understand that any information / personal details gathered for this research about me

are confidential and that my name or any other identifying information will be

destroyed at the completion of the research.

Charles Sturt University’s SB Ethics in Human Research Committee has approved this

project (protocol 218/2012/21). If you have any complaints or reservations about the

ethical conduct of this project, you may contact the Committee through the Executive

Officer

Dr. Pamela Mathews


Ethics Committee

Academic Secretariat


Boorooma Street

Locked Bag 588


Australia

Phone: (02) 69332575



447

With full knowledge of all foregoing, I agree, of my own free will, to participate in this

study.

Yes No

448

APPENDIX (D)

List of Interview Questions


Q: Have you already implemented human resource management practices in this

university? and would you please tell me what HRM practices are operational or

functional at your university?


Q: When did this university first introduce the human resource management practices?

Q: How would you rate the implementation of human resource management practices in

your organization?

Q: How do you perceive the impact of human resources management practices on

employee performances?

Q: How well do the employees understand the human resource management practices?

Q: How do they coordinate their services in accordance with human resource

management practices in the university?

Q: Do you notice any difference and competitiveness in the employee performance after

the introduction/ induction of human resource management practices in the university?

449

Q: Is there any change which you want to see in human resource management within

your university?

Q: Does this university noticeably celebrate the excellent services?

Q: Do the head/ bosses like you as a registrar consistently tell employees about the

standards used to evaluate the job performance?

Q: Does this university provide clear and consistent requirements for promotion?

Q: Is this university fair and equitable in its treatment of management with regard to the

promotions?

Q: Does the university provide opportunities for career development to the employee

working in the administration?

Q: Does this university support ongoing professional development?

Q: Does this university provide promotional opportunities?

Q: Does this university acknowledge the long hours devoted by employees to work?

Q: Does the university rewards excellent performance services through promotion

system?

Q: What is the main purpose of appraisal system in this university?

Q: Does the appraisal system assist employees in setting work related goals?

Q: Does the performance appraisal system consider improvement when an evaluation is

conducted?

Q: Is the performance appraisal conducted to identify employee career paths within the

university?

450

Q: Do you believe the appraisal system focuses more on positive aspects of

performance than on negative aspects of performance?

Q: Do you believe the various aspects of performance on which an employee is


Q: Do you believe that the organization is a very special place?

Q: Generally, the leaders of this organization are considered to be mentors, facilitators,

and parent figures?

Q: Leaders of the organization are generally considered to be entrepreneurs, innovators,

or risk takers?

Q: How would you define management style of this university?

Q: On what basis the university defines its success?

Q: Do you believe that the important people from the country's past are admired by

people today?

Q: In your opinion what is the Pakistan's strengths with regards to the importance of

historical events?

Q: What are the defining cultural attributes of a Pakistani that other people do not

possess?

Q: How do you see organizational citizenship behaviour?

Q: What is impact of organizational citizenship behaviour on performance of employee

working in the administration?

451

Q: Do you see any relationship between human recourse management practice and

organizational citizenship behaviour?

Q: I conclude with this question that is there anything else which you would like to add.

452

APPENDIX (E)

Interview Protocol:

Research Topic: Human resource management (HRM) practices and their impact on

organizational citizenship behaviour in the public sector universities of Pakistan.

1. The interviewee will be contacted in advance to determine a time convenient to

them.

2. Location will be the university/ interviewee workplace.

3. The interviewee will be provided with an information sheet and consent form as

well as the interview schedule in advance.

4. The consent form informs them that they may withdraw from the research at any

time.

5. The interviewee is informed of the confidentiality of the information and that

data will be anonymised.

6. The opportunity for a break, pause or halt will be provided to relax the

interviewee should stress or illness occurs.

7. The interview will be of 45-60 minutes duration.

8. The interviewee will be informed of the recording of the interview in advance

and consent will be taken. If the interviewee requests recordings will not be used

and notes will be taken with their consent.

9. The interviewee will receive a copy of the transcript to authenticate and keep as

a record if requested.

10. At the end interviewee will be thanked for their participation and time and

providing information for the research.

453

APPENDIX (F)

Human Resource Management Practices and their Impact on Organisational

Citizenship behaviour

General instructions on how to complete the survey:

The questions in this survey relate to the Human Resource Management Practices and

their Impact on Organisational Citizenship behaviour. Examples of these may include

reward management, promotion practices and performance appraisals etc.

The questionnaire consists of two parts. Part A asks about demographic variables and

organisational characteristics of an employee. Part B includes 6 sections and looks at

reward management, promotion practices, performance appraisals, organisational

culture, national culture and organisational citizenship behaviour.

Please attempt to answer all questions. Please note; questions appear on both sides of

each page on this questionnaire.

Completion and submission of the following questionnaire is taken as an indication that

you have read and understood the research information provided, and are voluntarily

consenting to participate in this research.

454

Part A – Demographics characteristics

(1) Age of respondent

20-29 30-40 41-50 51-60

Gender of respondent

Female Male

(2) Education level of respondent

Diploma level Undergraduate Postgraduate

PhD Other

(3) Grade of respondent

BPS (7-14) BPS (15-17) BPS (18-19)

BPS (20-22)

(4) Length of service

0-11months 1-10 years 11-20 years

21-30 years 31- 40 years

(5) Name of University…………………………………………………

Part B- Reward management

Please circle the number between 1 and 5 that best indicates the extent that you agree or

disagree with each of the following statement in the present situation.

Item Very Dissatisfied

Not Satisfied

Neutral Satisfied Very Satisfied

1 In this university good

performance does not necessarily

get rewarded

1

2

3

4

5

2 Employees are satisfied with the

recognition they receive for

doing good jobs

1

2

3

4

5

3 In this university, promotions go

to the people who really deserve

them

1

2

3

4

5

4 Management provides excellent

incentives and rewards to every

employee at all levels

1

2

3

4

5

5 This university noticeably

celebrates excellent service

1

2

3

4

5

6 Supervisors recognize employees

for doing high-quality work

1

2

3

4

5

455

7 Supervisors are responsive to

employees’ requests for help or

guidance

1

2

3

4

5

8 Supervisors are supportive of

employees’ ideas and ways of

getting things done

1

2

3

4

5

9 Supervisors use the rewards they

have to let employees know

when they have done fine jobs

1

2

3

4

5

10 Employees are always unclear of

what their supervisors expect

them to do

1

2

3

4

5

11 The performance appraisal

process is linked to reward

system.

1

2

3

4

5

12 Promotions and pay increases are

based on achieving documented

performance objectives.

1

2

3

4

5

13 Managers consistently tell

employees about the standards

used to evaluate job

performances

1

2

3

4

5

Part C - Promotion practices



Items Very Dissatisfied

Not Satisfied


1 The university provides

clear and consistent

requirements for

promotion

1

2

3

4

5

2 The university treats you

fairly and equitably with

regards to promotion

1

2

3

4

5

3 The university is fair and

equitable in its treatment

of management

1

2

3

4

5


opportunities for career

development

1

2

3

4

5

5 The university supports

ongoing professional

development

1

2

3

4

5


promotional opportunities

1

2

3

4

5

456

7 The university

acknowledges the long

hours you devote to work

1

2

3

4

5

8 The university rewards the

excellence in performance

through promotion system

1

2

3

4

5

Part D- Performance Appraisal



Items

Very Dissatisfied

Not Satisfied


1 The appraisal system is used for

promotion decisions

1

2

3

4

5


making salary adjustments

1

2

3

4

5


recognition purposes

1

2

3

4

5


demotion decisions

1

2

3

4

5


firing decisions

1

2

3

4

5

6 The appraisal system is used to

identify training needs

1

2

3

4

5


succession planning

1

2

3

4

5

8 The appraisal system includes a

component where employees are

given feedback on their

assessment

1

2

3

4

5

9 The appraisal system assists

employees in setting work-

related goals

1

2

3

4

5

10 Supervisors are required to keep

daily records of employee

performance

1

2

3

4

5

11 Supervisors are required to keep

weekly or bi-weekly records of

employee performance

1

2

3

4

5

12 Assessments are conducted by

the immediate supervisor

1

2

3

4

5

13 Assessments are conducted by

peers

1

2

3

4

5

14 Assessments are done by the

employee on him/herself

1

2

3

4

5

15 Assessments are conducted

annually

1

2

3

4

5

16 Employees keep daily records of

457

their own performance 1 2 3 4 5

17 Employees keep weekly or bi-

weekly records of their own

performance

1

2

3

4

5

18 Supervisors collect performance

information from other sources

(beyond their own

observations) such as

peer/customer before making an

assessment

1

2

3

4

5

19 A grievance procedure is in place

to challenge assessments if

necessary

1

2

3

4

5

20 As employees’ experience or

tenure increases, assessments are

made less frequently

1

2

3

4

5

21 There is more than one assessor

to assess any one employee

1

2

3

4

5

22 Any negative information (e.g.

missing a deadline) is included in

the assessment

regardless of whether there has

been improvement

1

2

3

4

5

23 Information collected via

cameras or computer-monitoring

systems are used in the

assessment process

1

2

3

4

5

24 The appraisal system considers

improvement when an evaluation

is conducted

1

2

3

4

5

25 All employees have their

performance evaluated regardless

of rank or tenure

1

2

3

4

5

26 Employees are evaluated on how

well they perform individual

tasks or behaviors (e.g.,

how well they prepared a report

or dealt with a student/teacher

enquiry)

1

2

3

4

5

27 Performance evaluation forms

include a written (i.e. narrative)

assessment

1

2

3

4

5

28 Numerical ratings of

performance are included in the

assessment report

1

2

3

4

5

29 Any performance feedback is

given in writing whether or not

there is a formal meeting

with the supervisor to discuss the

assessment

1

2

3

4

5

458

30 Employees are evaluated on

competencies (e.g. leadership,

creativity, communication or

other relevant competencies)

1

2

3

4

5

31 A formal meeting is held where

employees are given verbal

feedback on their

performance assessment

1

2

3

4

5

32 Appraisals are only conducted

for employees considered less

than “standard” in their

performance

1

2

3

4

5

33 Evaluations are checked by an

independent source other than the

primary assessor for

accuracy and fairness

1

2

3

4

5

34 Supervisors are appraised by

employees reporting to him/her

1

2

3

4

5

35 Supervisors are appraised on

their skills as performance

assessors

1

2

3

4

5

36 A numerical rating indicating

overall performance is calculated

as part of the

assessment.

1

2

3

4

5

37 Performance appraisal is

conducted to identify employee

career paths within the

organization

1

2

3

4

5

38 Supervisors are provided

adequate training in conducting

performance appraisals

1

2

3

4

5

39 Employees are provided adequate

training in how to actively

participate in the appraisal

process

1

2

3

4

5

40 The “numbers” used to rate

various aspects of performance

are appropriate (e.g., a 1 to 7

point scale, a 1 to 5 point scale, a

1 to 3 point scale)

1

2

3

4

5

41 The appraisal system focuses

more on positive aspects of

performance than on negative

aspects of performance

1

2

3

4

5

42 The appraisal system puts

adequate emphasis on team

performance

1

2

3

4

5

43 For each area of performance, the

appraisal system provides

1

2

3

4

5

459

information concerning

how the employee compares to

other employees in the same job

family

44 The formal appraisal meeting

between employer and employee

takes between one and

two hours

1

2

3

4

5

45 Situational constraints (e.g.

computer faults or electricity

failure or political unrest so the

work/assignments are delayed)

are taken into account when the

assessment is conducted

1

2

3

4

5

46 The various aspects of

performance on which an

employee is assessed are

appropriate

1

2

3

4

5

Part E- Organisational Culture



Items

Very Dissatisfied

Not Satisfied


1 The organization is a

very special place. It is

like an extended family.

People seem to share

a lot of themselves

1

2

3

4

5


very dynamic and

entrepreneurial place.

People are willing to

stick their necks out and

take risks

1

2

3

4

5

3 The organization is very

production oriented. A

major concern is with

getting the job done.

People are very

competitive and

achievement oriented

1

2

3

4

5


very formalized and

structured place.

Bureaucratic procedures

generally govern what

people do

1

2

3

4

5

460

5 The leaders of the

organization are

generally considered to

be mentors, facilitators,

or parent

figures

1

2

3

4

5


organization are


be entrepreneurs,

innovators, or

risk takers

1

2

3

4

5


organization are


be hard-drivers,

producers, or

competitors

1

2

3

4

5


organization are


be coordinators,

organizers, or

efficiency experts

1

2

3

4

5

9 The management style

in the organization is

characterized by

teamwork, consensus

and

participation

1

2

3

4

5



characterized by

individual risk-taking,

innovation, flexibility,

and uniqueness

1

2

3

4

5



characterized by hard-

driving competitiveness,

goal directedness, and

achievement

1

2

3

4

5



characterized by careful

monitoring of

performance, longevity

in position, and

predictability

1

2

3

4

5

13 The spirit that holds the

461

organization together is

loyalty and mutual trust.

Commitment to this

organization runs high

1 2 3 4 5



orientation toward

innovation and

development. There is

an emphasis on being on

the cutting edge

1

2

3

4

5



the emphasis on

production and goal

accomplishment.

Marketplace

aggressiveness is a

common theme

1

2

3

4

5



formal rules and

policies. Maintaining a

smooth running

organization is important

1

2

3

4

5

17 The organization

emphasizes human

development. High trust,

openness and

participation persist.

1

2

3

4

5

18 The organization

emphasizes acquiring

new resources and

meeting new challenges.

Trying new things and

prospecting for new

opportunities are valued

1

2

3

4

5

19 The organization

emphasizes competitive

actions and

achievement.

Measurement targets

and objectives are

dominant

1

2

3

4

5

20 The organization

emphasizes permanence

and stability. Efficient,

smooth operations are

important

1

2

3

4

5

21 The organization defines

462

success on the basis of

development of human

resources,

teamwork, and concern

for people

1 2 3 4 5



having the most unique

or the newest

products. It is a product

leader and innovator

1

2

3

4

5



market penetration and

market share.

Competitive market

leadership is key

1

2

3

4

5



efficiency. Dependable

delivery, smooth

scheduling, and low cost

production are critical

1

2

3

4

5

Part F- National Culture



Items

Very Dissatisfied

Not Satisfied


1 Important people from the

country's past are admired by

people today

1

2

3

4

5

2 One of the Pakistan's strengths is

that it emphasizes events of

historical importance

1

2

3

4

5

3 The Pakistan has a strong

historical heritage

1

2

3

4

5

4 A Pakistani possesses certain

cultural attributes that other

people do not possess

1

2

3

4

5

5 Pakistan in general feels that they

come from a common historical

background

1

2

3

4

5

6 Pakistani are proud of their

nationality

1

2

3

4

5

7 People frequently engage in

activities that identify them as

Pakistani

1

2

3

4

5

463

8 A specific religious philosophy is

what makes a person uniquely

Pakistani

1

2

3

4

5

9 It is impossible for an individual

to be truly Pakistani without

taking part in some form

of religious activity

1

2

3

4

5

10 Religious education is essential

to preserve the cohesiveness of

the Pakistan society

1

2

3

4

5

11 A specific religious philosophy is

not an important part of being

Pakistani

1

2

3

4

5

12 A true Pakistan would never

reject their religious beliefs

1

2

3

4

5

13 We should take admissions in our

local universities instead of other

/outside universities.

1

2

3

4

5

14 It is always best to enroll in

Pakistani educational institutes.

1

2

3

4

5

15 Pakistani people should not go

abroad for jobs because it is loss

for Pakistani in terms of

brain drain which effects country

development.

1

2

3

4

5

16 It may cost me in the long run

but I prefer to support Pakistani

academics.

1

2

3

4

5

17 People should only go abroad if

choice for field of study is

unavailable in the Pakistan.

1

2

3

4

5

Part G- Organizational Citizenship Behaviour



Items

Very Dissatisfied

Not Satisfied


1 My attendance at work is above

the norm

1

2

3

4

5

2 I do not take extra breaks.

1

2

3

4

5

3 I obey company rules and

regulations even when no one is

watching

1

2

3

4

5

4

I am the most careful employee 1

2

3

4

5

5 I believe in giving an honest

464

day’s work for an honest day’s

pay.

1 2 3 4 5

6 I consume a lot of time

complaining about unimportant

matters.

1

2

3

4

5

7 I always focus on what’s wrong,

rather than the positive side.

1

2

3

4

5

8 I tend to make little issues into

big problems.

1

2

3

4

5

9

I always find fault with what the

organization is doing.

1

2

3

4

5

10 I am the classic complainer who

always needs help.

1

2

3

4

5

11 I attend meetings that are not

mandatory, but are considered

important.

1

2

3

4

5

12 I attend functions that are not

required, but help the company

image.

1

2

3

4

5

13 I accept changes in the

organization.

1

2

3

4

5

14 I read and keep up with

organization announcements,

memos, and so on.

1

2

3

4

5

15 I take steps to try to prevent

problems with other workers.

1

2

3

4

5

16 I am mindful of how my

behaviour affects other people’s

jobs.

1

2

3

4

5

17 Do not abuse the rights of others.

1

2

3

4

5

18 I try to avoid creating problems

for co-workers.

1

2

3

4

5

19 I consider the impact of my

actions on co-workers.

1

2

3

4

5

20 I help others who have been

absent.

1

2

3

4

5

21 I help others who have heavy

workloads.

1

2

3

4

5

22 I help new people even though it

is not required.

1

2

3

4

5

23 I Willingly help others who have

work related problems.

1

2

3

4

5

24 I am always ready to lend a

helping hand to those around me.

1

2

3

4

5

465

APPENDIX (G)


27 November 2012

Name: Ms. Nusrat Khan Shahani

Address: School of Management and Marketing

Dear Ms Nusrat Khan Shahani

The School of Management and Marketing Ethics Committee has

approved your proposal "Human resource management (HRA1)

practices and their impact on organizational citizenship

behaviour in the public sector universities of Pakistan" for a

10 month period from "27 November 2012".

The protocol number issued with respect to this project is

218/2012/21. Please be sure to quote this number when

responding to any request made by the Committee.

Please note that the Committee requires that all consent forms

and information sheets are to be printed on School of

Management and Marketing letterhead. Students should liaise

with their Supervisor to arrange to have these documents printed.

You must notify the Committee immediately should your

research differ in any way from that proposed.

You are also required to complete a Progress Report f01m, which

can be downloaded from www.csu.cdu.au/rcsearch/forms/ehrc

annrep.doc, and return it on completion of your research project

or by "27 September 2013" if your research has not been

completed by that date.

The Committee wishes you well in your research and please do

not hesitate to contact Dr Ramudu Bhanugopan on extension

32696 or email [email protected] if you have any enquiries.

Yours sincerely

DR RAMUDU BHANUGOPAN


Direct Telephone: (02) 6933 2696

http://www.csu.cdu.au/rcsearch/forms/ehrc

http://www.csu.cdu.au/rcsearch/forms/ehrc


466


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Documents

Human Resource Management Practices and their Impact on